Index Funds vs Mutual Funds vs ETF

Mate Valtr
13 min readMay 5, 2021

WHAT’S THE DIFFERENCE and which one you should go with? Turns out which one you choose may end up being a difference between earning or burning heaps of cash. Keep reading and I’ll explain why.

But first — if you are lazy to read and prefer a video version of this article (you’re a ‘visual type of person’, I know…), watch it on 👉my YouTube channel right here, bud!

Alright, so you finally made a decision to be a responsible adult and started putting aside some extra cash to invest. Great.

And you heard someone saying that picking individual stocks is too risky and that you should hedge your money by putting it into a fund, like S&P500. That sounds about right too!

But then you find out that…eh…the situation is quite not as straightforward as you hoped to be. And more you dig into the topic, more obscure terms keep coming up.

Well, fret not. I felt the same. And so in this article, I’m gonna shine some light on what’s the difference between Index Funds, Mutual Funds & ETF. And at the end of this post, I’ll drop my 2 cents of about which one you’re likely better off to invest your hard-earned cash in.

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Mate Valtr

Compulsively obsessed with learning new things and occasional personal finance videos making. YouTube: http://bit.ly/MateValtrYT