Is there a difference between an index fund and an exchange-traded fund?

In short, no major difference in your holding. Go with ETF.

Both track the same underlying index, S&P 500 index.

The main difference between the two is how the funds are structured.

The fund "Infinity US 500 Stock Index Fund" is structured as mutual fund that feeds directly into Vanguard® U.S. 500 Stock Index Fund (parent fund). I suspect LionGlobal has some sort of an arrangement with Vanguard to do so.

However, this feeder arrangement does not come cheap. Looking at the expense ratio, 70bp p/a exluding sale charge of 200bp

The mutual fund structure is such that when you buy the parent fund at a particular day, it collate all the buying and selling order from everyone towards near the end of the day, and goes to market and buy the necessay securities

VOO (Vanguard S&P 500 ETF) is structured as an exchange traded fund. And as the name imply, you can buy the fund on an exchange at any time during the trading hours. It will contain the same securities as the mutual fund counterpart.

ETFs in general is also more tax-efficient than their mutual fund counterpart.

VOO expense ratio is only 3bp p/a. I think this settles any agrument as to which one you should go with.

The Infinity US 500 fund is a Unit Trust that purchases the Vanguard® U.S. 500 Stock Index Fund.

The difference between an index fund and an ETF is that the index fund is open ended (buy from the fund manager) and the ETF is close ended (IPO and then you can only buy from other people - works like a stock on an exchange)

Costs are different. You'll pay more on transaction costs by buying an ETF but lesser management costs on the ETF as compared to an index fund.

https://www.investopedia.com/ask/answers/033015...

Maybe this might help.