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Question

What is the difference between an ETF and an Index?

A. An index measures the performance of a defined group of securities according to specified rules.

  • Funds
  • Equity
  • Indexing
  • Portfolio Management

An ETF is an investment product that investors can buy and sell. Many ETFs aim to replicate an index, meaning the index represents the benchmark while the ETF provides a way to invest in the underlying market exposure.