Index Funds vs Mutual Funds vs ETFs: Which Is Best?

Index funds vs mutual funds vs ETFs... which is better to invest in to build your wealth. In this video, I give you an in-depth explanation of the differences between these 3 types of investment funds and how you can select the best option for yourself. In this video, you'll get a beginner-friendly explanation of investing in ETFs, index funds, and mutual funds, and you'll be better equipped to invest in your own broker moving forward.

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So... Index funds, ETFs, Mutual funds. They’re all very similar investments but still different enough that they have different names.

What I want to know is, are any of these investments so different, that one is better to invest in than the other? In other words, which will have the biggest impact on your wealth in the future?

Because that’s the only reason you’re investing in the first place - to build wealth. But if you’re choosing the wrong investments, then you may be causing yourself to lose, hundreds of thousands of dollars in future gains, and possibly even millions.

So, of these 3, which is the better investment?

Well, before we choose a winner, it’s first critical that you understand what each of these are and what makes them unique from one another.

On a very basic level, all 3 of these are investment funds. That may have been obvious to you since the word fund is literally in all 3 of them.

An investment fund is basically a pool of money that multiple investors pay into. The collective capital of all these investors allows the fund to buy into a broad selection of stocks, bonds, and other assets.

Investment funds allow you to add hundreds, and many times thousands of different stocks, bonds, and other assets into your investment portfolio without you having to go buy all of those assets individually.

It’s honestly one of the best and easiest ways to invest your money and build your future fortune.

*None of this is meant to be construed as investment advice, it's for entertainment purposes only. The links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partner websites. The video is accurate as of the posting date but may not be accurate in the future.

#etfs #indexfunds #mutualfunds

[loiswhitley]

For Vanguard Index Funds, they require a minimum so keep that in mind if you are new to this. Most have a $3000.00 minimum. So save your money 💰

[JoshuaMayo]

Sorry for the video quality, it looks like the HD hasn't been processed yet. Ugh! Will be HD soon

[devonpruitt]

Brother, I am proud of you. I am a new financial advisor in this field . You probably have your thoughts about my profession lol. However, watching your videos help me refresh my knowledge and mirror the way you convey financial principles in a clear and concise manner. I am inspired to create my own platform . Rarely do I subscribe to specific people, but you caught my interest . Blessings upon you. Please continue to share!!

[ChristineBecker]

This video was made for me. Really it was. 😄😃😀 Thank you for the stellar info! 👍

[BeeBombard]

Let’s Your video made me money with vti, vxus, and qqq. Thanks for that and first btw!

[kimnkayscakes]

I'm 23 working a 9 to 5 trying to learn all I can about investing, your videos are helping me thank you. I'm starting with index funds until I'm able to afford etfs.

[Steven-uvlc]

Question, are the returns the same for the Vanguard S&P 500 Index Fund and the Vanguard S&P 500 Index Fund ETF? I don't want to make the mistake of missing out on a higher average return

[Victoriagonzlz]

Can you get dividends on index funds or just individual stocks?

How much work is included in managing an ETF? Why get an ETF over an index fund besides the cost to start it? For example SP 500 vs SP 500 index fund whats the difference (pros and cons) besides the starting cost?

Is your ROTH IRA assigned to an ETF or an index fund? Is that how Roth IRAs work? If so, when can you take out ETF/index fund profits and not get taxed?

[wrestlo]

I really want people to hear what you are saying right now. Listen to this man.

[broketohero]

I'm happy that you've recorded Buffett while sharing the big secret to you J! 😆 This way, you'll keep the haters on mute! 😎

[loiswhitley]

Josh last question today. I promise 🤣 If I purchase stocks to put in my ROTH IRA does that count towards my max $6000.00 contribution? Or can I still contribute $6000 after I purchase the stocks I want to invest in my ROTH IRA? Thanks 😊

[loiswhitley]

Joshua if I made a significant gain on VOO, am I selling that gain/profit and reinvesting it or leave it alone and just reinvest the dividend?

[jacobseymour]

Mutual funds are great for people that have no clue what they are doing but want to start to invest (me c. 10 years ago). Since I already have so much with the company I have kept it and continue to dollar cost average monthly. However, I recently have immersed myself in investing with books, podcasts, channels like this, etc. and am starting to invest on my own with Fidelity. So far I only have ETFs. Thank you Joshua for the education!

[broorly]

Hi Josh!! ✌️😀❤️ Hi buddy, I am so naive with your subject. Nevertheless I still watches it.
No worries, I am so fine in taking advantage on cryptos.

But through this video, you showed us your knowledge and the benefit of investment.

Much respect Josh😀❤️!!

I hope this channel would grow more.. God bless dear.. 🙏🙌❤️😀.. Keep smiling😀🌹❤️..

Ohhh!! The lighting on your face doesn't show how good looking you are though. ✌️🙏😀

[Last-Lap-Lando]

I think mutual funds were a decent option pre internet

[whatarefriends]

Hey there’s no one size fits all answer here!😮

[eckankar]

Background music is so annoying, why does investing have to be a musical?