What is the primary aim of ETFs regarding stock indices?

The primary aim of Exchange-Traded Funds (ETFs) in relation to stock indices is to replicate stock indices or benchmarks. ETFs are designed to track the performance of a specific index, such as the S&P 500 or other market benchmarks. By investing in an ETF that mirrors an index, investors can gain exposure to a broad range of stocks within that index, reflecting its overall performance.

This replication is achieved through a strategy where the ETF holds the same stocks, in the same proportions, as the underlying index it aims to track. This allows investors to participate in the index's performance without needing to buy each individual stock. Therefore, the main focus of an ETF is to provide a convenient, cost-effective way to invest in a diversified portfolio that aligns closely with a stock index's performance rather than trying to outperform it or engage in random investment strategies.