ETF vs. Index Fund: The Difference and Which to Use

The article explains the difference between exchange-traded funds (ETFs) and index funds, clarifying that index funds can be structured as mutual funds or ETFs but not all ETFs are index funds. It highlights that index funds track benchmarks like the S&P 500, while ETFs trade like stocks on exchanges. Examples include Vanguard’s VOO (ETF) and VFIAX (mutual fund), both tracking the same index.