Is ETF an index fund?
Yes, ETF funds are index funds. ETF funds follow a specific index and buy all or part of the stocks in the index. Commonly used indexes include SSE 50 Index and CSI 300 Index. Most of them take the constituent stocks in these indexes as investment targets, and form a portfolio as a whole, so ETFs belong to index funds. However, index funds include ETF funds, but index funds are not necessarily ETF funds. ETF funds can only be traded on exchanges, both index funds traded on exchanges and index funds not traded on exchanges.
What's the difference between ETF funds and index funds?
1 Different trading methods: index funds can be traded on third-party trading platforms, such as Alipay and Tian Tian Fund Network; ETF index funds are generally purchased on stock exchanges or stock trading software.
2-day valuation methods are different: the intraday valuation of index funds is generally based on the fund's position ratio and the rise and fall of Shanghai and Shenzhen stock markets on that day to estimate the fund's net value. The net transaction value of the fund on the trading day is the net value after night accounting by the fund company and the custodian bank. The trading price of ETF index funds is real-time trading, and the price will change every 15 seconds.