Different Between INDEX FUNDS AND ETFS

Exchange-traded funds and index funds are the investments preferred by traders. An investment strategy that minimises the buying and selling to maximise the returns. Passive investments are a good choice for investing for a long period of time. For example, Index investment is where investors purchase the index and hold it for a long period of time. A portfolio investment strategy that minimises the trading cost and index funds and ETFs are the most common passive investments. A cheaper and less complex investment that builds wealth gradually. Investors of such investments prefer to invest for long and earn from short term fluctuations of the market. As discussed, index funds and ETFs are the two most traded investment strategies of passive investment. With this article, we’ll learn in detail about the two assets and how they differ from one another.