Similar but still different. ETF funds are considered more accessible for entry and exit than traditional index funds.
In ETF funds, you buy shares, while funds have more significant financial resources and invest in a more diversified portfolio of stocks, cryptocurrencies, and the like.
Index funds are designed to track market indices.
You cannot invest directly in an index, but you can in an index fund. They track benchmark indices such as Nasdaq 100 or S&P 500, CROBEX, and the like.
Small investors mostly choose mutual funds, while institutional investors prefer ETF funds.
Index funds are a relatively defensive financial strategy, with lower risks and returns, while ETFs are riskier but can bring higher profits.