SUPPLEMENT DATED OCTOBER 16, 1998

                                  TO

                          WEBS INDEX FUND, INC.

                              PROSPECTUS

                         DATED OCTOBER 29, 1997


        This Supplement relates to the Prospectus of WEBS Index Fund, Inc.
(the "Fund") dated October 29, 1997 (the "Prospectus") and is in addition to
the Supplements thereto dated April 22, 1998 and September 15, 1998.

        The following paragraph replaces the fourth paragraph under the
heading "The Fund and Its WEBS Index Series - Investment Policies" in the
Prospectus:


        Each WEBS Index Series has the following policy with respect to
industry concentration:  With respect to the two most heavily weighted
industries or groups of industries in the benchmark index of the WEBS Index
Series, the WEBS Index Series will invest in portfolio securities (consistent
with its investment objective and other investment policies) such that the
weighting of each such industry or group of industries in the WEBS Index
Series does not diverge by more than 10 percentage points from the respective
weighting of such industry or group of industries in the benchmark index.  An
exception to the general policy stated in the previous sentence is that if
investment in the stock of a single issuer would account for more than 25% of
the WEBS Index Series, the WEBS Index Series will invest less than 25% of its
net assets in such stock and will reallocate the excess to stock(s) in the
same industry or group of industries, and/or to stock(s) in another industry
or group of industries, in the benchmark index.  Each WEBS Index Series will
evaluate these industry weightings not less frequently than weekly, and at the
time of such an evaluation, will adjust its portfolio composition to the
extent necessary to maintain compliance with the above-stated policy.  A WEBS
Index Series will not concentrate its investments except as discussed above. 
As of August 31, 1998, as a result of this policy with respect to industry
concentration, the Italy WEBS Index Series concentrates (that is, it invests
25% or more of the value of its assets) in the Telecommunications industry,
the Spain WEBS Index Series concentrates in the Banking industry, the Sweden
WEBS Index Series concentrates in the Electrical & Electronics industry, and
the Switzerland WEBS Index Series concentrates in the Health & Personal Care
industry.