Index funds and exchange traded funds (ETFs) seem similar but trade entirely different. With an open-ended index mutual fund, you deal directly with the fund or through an advisor or broker. An ETF is like a stock on the stock exchange and can be bought and sold throughout the day. They are considered an index fund but cost less than a mutual fund and still require a commission when you reinvest or sell. With an open-end mutual fund you don’t pay commissions when you buy and sell because they are not stocks, the DailyRecord.com clarifies.  Warren Boroson thinks most people are better off investing in index type funds vs. stocks unless they have the time, access to information, interest and talent to devote to research.