Passive Investing: Deciding between ETFs and Index Funds | NerdWallet

Which is better: ETF's or Index Funds? The main difference between index funds and ETFs is that index funds can only be traded at the end of the trading day whereas ETFs can be traded throughout the day. ETFs may also have lower minimum investments and be more tax-efficient than most index funds.

Both can diversify your investment portfolio, and both are passively managed, but it’s important to read the fine print on any fund to know what exactly you’re investing in and how much you’re paying in fees. Alana Benson breaks it down.

Suggested Articles:
Index Fund vs. ETF: What’s the Difference?: https://www.nerdwallet.com/article/investing/etf-vs-index-fund-compare

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Passive Investing: Deciding between ETFs and Index Funds | NerdWallet
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