facebookWhat is the difference between index funds and ETFs in the simplest way possible? - Seedly

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Anonymous

16 Jun 2020

General Investing

What is the difference between index funds and ETFs in the simplest way possible?

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SPY is a ETF and Infinity US 500 is an index fund. SPY needs brokerage to buy sell, the other one doesn’t but incur more expense ratio. SPY has to buy in 1s whereas the other can buy in decimals.

Ngooi Zhi Cheng

15 Jun 2020

Student Ambassador 2020/21 at Seedly

In the simplest terms possible it is just a matter of terminology to the layman!

ETFs are exchange traded funds, means they are traded on the exchange, this can either be passively managed or actively managed funds.

Index Funds are funds whose purpose is to track the index.

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