They typically give you some index upside and some downside protection (guaranteed by the insurance company).
Not exact matches
Both
typically seek to track an
index, both trade on a stock exchange and both
give investors exposure to a diversified portfolio of securities in one trade.
Given that these will be extremely long - term investments — they won't even touch the money for 10 to 15 years at minimum — you'll
typically want to invest in broad market
index funds.
And, because the ETF is
typically based on an
index, buying an ETF
gives your portfolio exposure to a number of companies.
These policies allow a positive return on the cash value —
typically up to a certain set maximum or «cap» — when an underlying
index performs well during a
given year.
When this
index performs well during a
given year, a positive return is credited to the cash value (
typically up to a certain maximum, or cap).
If, however, the underlying
index performs poorly in a
given period, then the value of the account will not endure a loss, but rather will
typically be credited with a 0 % for that period.