ETF vs Index Fund

They are not opposites. An index fund is a strategy: track an index. An ETF is a way to package a fund so it trades on an exchange. Many ETFs are index funds (SPY and VOO track the S&P 500); “index fund” in everyday use often means an index mutual fund.

Where they differ

When people compare the two, they usually mean an index ETF against an index mutual fund. Then the differences are the wrapper’s: an ETF trades all day at market prices with no minimum beyond one share; the mutual fund trades once a day and may have a minimum investment.

Not every ETF is an index fund: some are actively managed or follow complex strategies, so check what a fund holds and how.

Put it to use

S&P 500 index ETFs compared →Low-cost ETFs →

General information, not investment advice.