The MSCI EAFE Index consists of stocks from companies from over 20 developed markets to measure international equity market performance. The Index is considered the oldest truly international stock index: it has been calculated since 1969. Many foreign stock funds are compared against the MSCI EAFE Index.
Bailey is thinking about investing in a mutual fund. She decides to invest in the iShares MSCI EAFE Index Fund, which mimics the MSCI EAFE Index.
Select the best description of the iSHares MSCI EAFE Index fund.
a) an active fund
b) a passive fund
c) a litigation fund
d) a sector fund
