Risheek Sharma

01 Jun 2021

∙

General Investing

Which should I choose? S&P 500 ETF or S&P 500 Index Fund?

When I turn 18 soon, I want to begin a DCA savings plan for a S&P 500 tracking index fund or ETF. But I can’t choose the better option. I know IFs will have lower overall commission but ETFs have lower expense ratios.

Any advice or suggestions are appreciated!

Also, if I choose FXAIX, how much will IB charge for monthly purchases in commissions? (if any)

Alternatively, is there a better and cheaper way to buy FXAIX or other index funds?

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Tan Choong Hwee

01 Jun 2021

Solutions Specialist at Providend

Here is a 5-year comparison chart between VOO and FXAIX:

As you can see, both move in tandem, with VOO slightly ahead due to lower TER.

Not familiar with IB charges for mutual funds. You should contact them about the fees. Please be aware that IB has a minimum USD10 commission per month for account with less than USD100k.

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Which one is the best to choose if we want 5 ETF fund for S&P 500, Dow Jones Index, Nasdaq , China , Asia?

What’s the difference between investing in a S&P 500 index fund vs a S&P 500 ETF?

Is there any index fund or ETF which allows me to buy into something like S&P 500 and it automatically reinvests the dividend back for more earnings?

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What is the S&P 500 Index? There are so many S&P 500 ETFs out there listed in the US and Ireland. What are their differences? Which one should I invest in?