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Provide for reconciliation pursuant to title II of H. Con. Res. 14Section 70204 › Proposal

The money must sit in a low cost index fund without leverage

To provide for reconciliation pursuant to title II of H. Con. Res. 14, section 70204, Sec. 70204. Written by .

The money must sit in a low cost index fund without leverage

The document says “meansWho acts: Congress, Secretary of the TreasuryHow: statuteSec. 70204 in the PDF
What the document says

“The term `eligible investment' means any mutual fund or exchange traded fund which--”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70204

The section defines an eligible investment as a mutual fund or exchange traded fund that tracks a qualified index, does not use leverage, has annual fees and expenses of no more than 0.1 percent of the balance, and meets any other criteria the Secretary sets. A qualified index is the Standard and Poor's 500 stock market index or another index made up of equity investments in primarily United States companies for which regulated futures contracts trade on a qualified board or exchange. An industry or sector specific index does not count, but an index based on market capitalization may.

What the document actually says

“The term `eligible investment' means any mutual fund or exchange traded fund which--”

To provide for reconciliation pursuant to title II of H. Con. Res. 14, Sec. 70204
That sentence, in plain words

The money must sit in a fund. It may be a mutual fund or a traded fund. It must meet the tests below.

What this is about

The fund must track a broad index of United States shares. It may not borrow to invest. Its yearly fees may not top a tenth of a percent.

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