INDEX FUND VS ETF: Which is Best for YOU? A Side by Side Comparison

It's so common for young people to easily choose trading ETFs over holding a boring Index. I only to find out nothing beat steady and consistent growth after losing money trading all kind of securities... haha

I love Index Funds & ETF's myself! Index funds for my retirement accounts, ETF's for my regular brokerage accounts when I want to speculate things a little. Great Video Nhu!

Great video! In additional to what you said, people should also consider the tax efficiency between Index and ETF. With ETFs being traded more frequent, therefore, it's likely to have higher taxes than an Index. But both are needed for different investment purposes. You're so right in avoiding the actively managed fund!

If people don’t mind the manual work and opt for more tax efficiency, ETF would be a better choice. Nice content!

Another problem with ETFs is the bid/ ask spread. If the ETF have high trading volume, it does not make much different. But if it has low trading volume, the spread could get pretty wild and potentially costing you more money. Though it's a more tax efficiency.

This is a great explanation. When I was trying to learn about these differences, I could not find such a clear and concise explanation.

Very concise explanation. Making a side by side comparison makes it so much easier to see the differences. Nice Content!

Awesome! Another great video Nhu.

I was always confused by them too. I go for index fund for my retirement accounts and ETFs or stocks for my regular broker account, I just like to do a little trading sometimes. Nice content!

Hey, Nhubee you make great videos can I get your email actually I am a thumbnail designer I have something to offer. Good luck for the future you are making nice content thanks.

Hello friends, I did not mention one other important characteristic of ETF was the tax efficiency. ETF is structure in a way that ETFs are generally more tax-efficient because they tend not to distribute a lot of capital gains. Meaning you would pay less taxes if holding an ETF long term comparing to the index fund. Please take into account the tax effect as well when choosing between an ETF and Index Fund.