An index fund is a type of mutual fund whose performance is directly linked to that of an underlying stock of bond index. An index is a collection of securities (such as stocks and bonds) used to gauge the performance of an entire business sector, industry, segment of the market, and even country. Examples of popular indexes that are widely known include the Standard & Poor’s or S&P 500, the Dow Jones Industrial Average, Moody’s Corporate Bond Index, and the Wilshire 5000 Index, one of the broadest measurements of stocks used in the stock market today. The purpose of the index fund is to allow individual investors to mimic the performance, in terms of market returns, of the underlying index without necessarily having to purchase shares or the components of the index individually. The top 3 index funds for you to consider include: Standard & Poor’s (S&P) Oil & Gas Equipment & Services exchange traded fund (ETF), Vanguard 500 Index Fund, and the Vanguard Telecommunications Services Index Fund.