Index ETF Definition
Index ETF refers to an Exchange Trade Fund (ETFs) that follows a benchmark index. ETFs are very much like mutual funds, they are baskets of stocks. The main difference between ETFs and mutual funds is that ETFs can be traded at any time while the host stock market is open and their prices reflect the price changes throughout the day. The mutual fund shares can only be redeemed at one price daily. Therefore ETFs are more flexible.