ETFs vs. Index Mutual Funds: Understanding the Differences
Exploring the Mechanics, Trading Differences, Fees, and Tax Efficiency of ETFs and Index Mutual Funds Investors seeking exposure to dominant stock market indexes like the S&P 500 have a choice between exchange-traded funds (ETFs) and traditional mutual funds. Vanguard, for example, offers both ETFs and mutual funds that track the same index. While both options…