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ETF vs. Index Fund: What Are the Differences?

Which one is better for you?

By Adam Levy – Updated Sep 11, 2024 at 11:21AM

Key Points

  • ETFs trade like stocks and can have lower fees but may incur broker commissions.
  • Index funds offer automatic dividend reinvestment and might start with lower minimum investments.
  • ETFs provide better tax efficiency due to fewer taxable events compared to index funds.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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