Index funds vs ETFs | Investing Basics

Index funds & ETFs are both great low-fee, passive ways to invest for the long term.

However, there are a few key difference. Firstly, ETFs trade like a stock and fluctuate when the market is open. Whereas index funds are valued once a day. Secondly, fees can differ between index funds and ETFs - the best option is usually the low fee option. Thirdly, ETFs have more choice but I think this is actually a bad think as people end up investing into multiple ETFs that all overlap each other. Fourthly, ETFs are more accessibility and require lower minimum investments which is a great benefit for people just getting started with investing.

Personally, I prefer index funds as they have been around for longer and I am less likely to get sucked into checking my investments regularly. It's all about the long term buy and hold.

Thanks for watching!

⏳ Timestamps:
0:00 - Intro
0:50 - 1. Trading
2:02 - 2. Fees
3:32 - 3. Choice
5:04 - 4. Accessibility
6:30 - Bid-Ask Spread

⚠️ Disclaimer:
I am not a financial advisor. This video is for entertainment purposes only. Please seek professional advice to get the best information for your personal situation. You are responsible for the financial decisions that you choose to make.

I have received hundreds of messages over the years so thought I would condense all of the basics of investing into an easy-to-read completely free ebook. It currently has 2,000+ downloads!

(These are affiliate links. If you buy through my link I will receive a free share/small commission. I really appreciate if you use my links!)

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🙋‍♂️ Who Am I?
My name is Ryan, I'm 23 and currently working in London as a trainee chartered accountant whilst completing the ACA exams. I graduated with a degree in Economics in 2019.

Making Money Simple was established in 2019 and is a Financial Education platform. The main aim is to spread Financial Education in an easy to understand and jargon-free way. The main purpose is to get people investing to help them achieve financial freedom.

📱 Contact me: Feel free to leave a comment on this video or DM me on Instagram.

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⚡Subscriber Count: 484

[pandabossanna]

Great and detailed video. You say you prefer index funds over ETFs. What do you use to invest in them? I'm starting to consider new platforms outside of the commission free platforms

[iQinvesting]

Nice comparison mate, well explained!

[StanWithaPlan]

That clip you added on the S&P 500 etf and index was so good! Such a good point, not something many people realise! Nice one mate 😀

[ola_majekodunmi]

Great video Ryan! I personally invest in etfs but this video is a great insight into index funds!

[thestreetinvestor]

Relax and take notes! I needed that Biggie sample homez....well done, very helpful. I got 2 index funds and a vusa ting. But this has made me think. Peace

[marditoon]

Can you now buy US ETFs in the UK now the UK are out of the European Union?

[joelrarmstrong]

Well explained, where did you get your financial education?

[engagedawareness]

Great video mate! Out of curiosity what do you invest in on HL?

[irishwealth]

Really informative video! Well done mate! 👍

[BajanQueen]

Thank you! Another great video and nicely explained. Do you plan on doing a video on SIPPs at some point? Would love it if you did

[Jordan-pjiv]

Hi mate, just watched this video again; looking to open a Vanguard S+S ISA. Do they have an app? And I already have one with H + L, so would I have to make the switch?