Is etf an index fund?

ETF generally refers to transactional open-end funds, that is, funds listed on the exchange. ETF can be bought and sold freely in the secondary market like trading stocks or closed-end funds, and it also has the advantage of free subscription and redemption of open-end funds. So, is ETF an index fund? What is the difference between index funds and etf index funds? We have prepared relevant contents for your reference.

Is etf an index fund?

Etf funds are index funds. Etf funds follow a specific index and buy all or part of the stocks in the index, such as SSE 50 and CSI 300. , and the constituent stocks in these indexes are used as investment targets to form a portfolio, so they belong to index funds.

However, it should be noted that index funds include etf funds, not necessarily etf funds. Etf funds can only be traded on stock exchanges, including index funds traded on stock exchanges and index funds not traded on stock exchanges.

What is the difference between index funds and etf index funds?

Difference 1: the transaction method is different.

Index funds can generally be purchased from third-party software, such as Alipay and Tian Tian Fund Network, while etf index funds are generally purchased through the secondary market in the market, that is, they can be purchased directly through stock software.

Difference 2: The intraday valuation method is different.

The intraday valuation of index funds is the net value of funds estimated by some fund websites according to the proportion of fund positions held on that day and the fluctuation range of Shanghai and Shenzhen stock markets, while the prices of subscription and redemption are based on the net value of funds after night accounting and proofreading by fund companies and custodian banks.

However, etf index funds have different prices on the trading day, and the quotation is refreshed every 15 seconds, and the transaction is made at the real-time price.