EvrClrx311
Full time employment: Posting here.
- Joined
- Feb 8, 2012
- Messages
- 648
I am trying to track down the main differences between these two investing types. In a nutshell what is the difference between an Index Fund and an ETF?
For example:
VSMAX - Vanguard Small Cap Index
VB - Small Cap ETF
They both have an expense ratio of 0.09% and both have identical 10 year average returns (6.40% and 6.41%)
Another example:
VGHCX - Vanguard Health Care Fund
VHT - Heath Care ETF
I notice that VHT has a lower expense ratio (0.09%) while VGHCX has (0.34%), so what would be the advantage of investing in VGHCX?
For example:
VSMAX - Vanguard Small Cap Index
VB - Small Cap ETF
They both have an expense ratio of 0.09% and both have identical 10 year average returns (6.40% and 6.41%)
Another example:
VGHCX - Vanguard Health Care Fund
VHT - Heath Care ETF
I notice that VHT has a lower expense ratio (0.09%) while VGHCX has (0.34%), so what would be the advantage of investing in VGHCX?