Index Funds VS ETF's! #excel #valuation #americanbillionaire

Index funds are mutual funds that track a specific market index, like the S&P 500. They’re usually bought directly through a brokerage and trade only once a day at the market’s closing price. They’re great for hands-off investors who want simple, low-cost diversification.

ETFs, or Exchange-Traded Funds, also track indexes but trade like individual stocks. You can buy or sell them throughout the day, which gives you more flexibility. Plus, ETFs generally have lower fees and require smaller initial investments compared to index funds.

So, which is better?

If you like the idea of a set-it-and-forget-it approach, go for index funds. If you want the ability to trade throughout the day and enjoy lower costs, ETFs are for you.

Both are great for building wealth long-term, but now you know how to choose the one that fits your style!