Summary of Index Funds vs Mutual Funds vs ETF (WHICH ONE IS THE BEST?!)

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Index funds, mutual funds, and ETFs all have their own pros and cons, so it really depends on the individual investor's needs and preferences as to which one is the best. Index funds offer lower fees and more automatic reinvestment than mutual funds, while ETFs are similar to index funds but offer the added convenience of being able to trade them like stocks.

• 00:00:00 Index funds are a type of mutual fund that are passively managed, meaning that the fund follows a fixed formula rather than making buying and selling decisions. This eliminates the need for a fund manager, which can be expensive. However, over time fees can reduce your nest egg.
• 00:05:00 Index funds offer lower fees and more automatic reinvestment than mutual funds, while ETFs are similar to index funds but offer the added convenience of being able to trade them like stocks.