Active Index Fund

This fund lives in the netherworld between a basic index fund with very little subsequent activity after formation, and an actively managed mutual fund.

An active index fund has a base set of parameters, or an index, it follows. Like the car industry. But every now and then comes along an investment, um, vehicle...which the active index fund manager might want to incorporate into their fund. That is, a segment of the index fund is essentially left open to active management, and yes, we're lookin' at you, Tesla.