What does it mean when they say ETF is ownership of a Fund? What is this fund exactly refer to? Is it related to index trading?

2 Answers

  • Amy
    Lv 7
    1 month ago

    ETF stands for Exchange-Traded Fund. ETFs are just mutual funds that are traded continuously.

    Index funds tend to be ETFs rather than funds that trade after hours, but not all ETFs are index funds. They can do anything a mutual fund does. They don't even have to invest in stocks.

  • Anonymous
    1 month ago

    A mutual fund is an investment pool.

    An ETF is a type of mutual fund whose shares are traded in real time on the exchange.  

    No, these terms have nothing to do with indexes.    That being said, many mutual funds are based on a particular index.  

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