What's the difference between ETFs and index funds?

ETFs can be bought and sold throughout the day, while index funds can only be traded at the price point set at the end of the trading day.
Alyssa Powell/Insider
An exchange traded fund, or ETF, is a type of security that tracks an underlying asset.
An index fund is a type of mutual fund or ETF that tracks the performance of a target index.
Both can offer strong long-term returns, diversification, and cost savings.
Visit Insider's Investing Reference library for more stories.
When you're investi