What’s the difference between an index fund and an ETF?
In: Economics
An ETF (exchange traded fund) is one that has a ticker symbol and trades like a stock does. An ETF could have any sort of investment philisophy/goal.
An index fund is a mutual fund that’s investment strategy is to mirror a particular stock market index, like the S&P 500, by holding the shares in the proportion that they make up that index. This differs from other mutual funds which are actively managed, meaning there are manager who analyze stocks to invest in and amounts to hold based on their research.
So one is the means of buying/selling into the mutual fund, while the other is the investment strategy that the fund follows.
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