{"id":3735,"date":"2025-03-21T17:25:36","date_gmt":"2025-03-21T11:55:36","guid":{"rendered":"https:\/\/www.torusdigital.com\/toruscope\/?p=3735"},"modified":"2025-08-18T15:04:22","modified_gmt":"2025-08-18T09:34:22","slug":"etf-vs-index-fund","status":"publish","type":"post","link":"https:\/\/www.torusdigital.com\/toruscope\/mutual-funds\/etf-vs-index-fund\/","title":{"rendered":"ETF vs Index Fund &#8211; Key Differences You Should Know"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_section el_id=&#8221;blog-inner-layout&#8221;][vc_row overlay_dotted=&#8221;&#8221;][vc_column el_class=&#8221;blog_primary&#8221;][vc_row_inner][vc_column_inner][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">Investing in financial markets requires careful selection of funds. When done wisely, it can lead to rewarding returns and long-term financial growth. Two of the most popular passive investment options are <\/span>Exchange Traded Funds (ETFs)<span style=\"font-weight: 400;\"> and Index Funds. Both these funds help investors gain diversified exposure to markets at a low cost. However, they have different features which may affect your investment strategy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Continue reading this guide to understand the difference between <\/span><b>ETF vs index fund<\/b><span style=\"font-weight: 400;\">, their benefits, drawbacks, major differences, and which is a better option.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Exchange_Traded_Funds_ETFs\"><\/span><b>Understanding Exchange Traded Funds (ETFs)<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An<a href=\"https:\/\/www.torusdigital.com\/etf\"><strong> Exchange-traded Fund<\/strong><\/a> is a collection of securities or pooled investments that track and replicate a specific index, commodity, sector, or market. The assets that an ETF can invest in include stocks, bonds, commodities, currencies, etc. Moreover, ETFs can be traded at real-time prices throughout market hours, so their prices keep changing.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Investing_in_ETFs\"><\/span><b>Benefits of Investing in ETFs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ETFs are a good way to build a diversified portfolio at a low cost. Here are some more advantages of investing in ETFs:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Liquidity_and_Flexibility\"><\/span><b>Liquidity and Flexibility<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">High liquidity is one of the biggest benefits of investing in an ETF. As an investor, you can trade these funds throughout market hours like individual stocks. This way, investors can buy and sell these funds anytime to rebalance their portfolios instantly.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Affordability\"><\/span><b>Affordability<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ETFs are inexpensive investment tools. Many ETFs have a cost ratio much lower than that of most <a href=\"https:\/\/www.torusdigital.com\/mutual-funds\"><strong>mutual funds<\/strong><\/a>. Investors can purchase one unit of an ETF, which generally does not require a lot of capital, so people with small amounts of cash to spare can invest. Because of their affordability, investors can easily invest in diversified portfolios with limited capital.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Diversification\"><\/span><b>Diversification<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ETFs offer immediate diversification by replicating an index, <a href=\"https:\/\/www.torusdigital.com\/stocks\/sectors\"><strong>sectors<\/strong><\/a>, or commodity. Instead of purchasing many stocks individually, an investor can achieve broad exposure to the market using a single ETF. For instance, the <a href=\"https:\/\/www.torusdigital.com\/indices\/nifty-50\"><strong>Nifty 50<\/strong><\/a> ETF provides access to 50 individual companies, thus reducing the risk of owning one stock. Such features make ETFs beneficial for risk management.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Accessibility\"><\/span><b>Accessibility<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">ETFs are widely available through brokerage accounts and <a href=\"https:\/\/www.torusdigital.com\/\"><strong>online trading platforms<\/strong><\/a>, making them easily accessible to investors. Comparing <\/span><b>ETF vs index funds<\/b><span style=\"font-weight: 400;\">, index funds require higher minimum initial investments, allowing fewer individuals to participate in the <a href=\"https:\/\/www.torusdigital.com\/share-market-today\"><strong>stock market<\/strong><\/a>.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Tax_Advantage\"><\/span><b>Tax Advantage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Compared to traditional mutual funds, ETFs have more tax benefits. This is because underlying securities are sold in case the investors redeem their investments, resulting in a tax burden for the fund and lowered gains. However, in the case of ETFs, there is less internal trading that does not give rise to capital gains and, thus, less tax liability.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Drawbacks_of_ETFs\"><\/span><b>Drawbacks of ETFs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While ETFs can be a beneficial investment option for many, there are certain drawbacks associated with it. Here are the key drawbacks of investing in ETFs:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Trading_Costs\"><\/span><b>Trading Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If you frequently buy or sell ETFs, it can increase your trading costs despite having a lower expense ratio. Subsequently, you will have to pay commissions, bid-ask spreads, and brokerage fees, which can reduce your overall returns if you make frequent transactions.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Price_Fluctuations_and_Market_Volatility\"><\/span><b>Price Fluctuations and Market Volatility<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Unlike mutual funds, which are priced only once daily, ETFs trade during the day. Therefore, their prices are sensitive to market demand and supply. As a result, ETFs can trade at a premium or discount compared to their NAV. This way, there can be potential losses for a short-term trader.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Lower_Dividend_Yield\"><\/span><b>Lower Dividend Yield<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Some ETFs may offer lower dividend yield than <a href=\"https:\/\/www.torusdigital.com\/stocks\"><strong>individual stocks<\/strong><\/a> or actively managed funds. Since ETFs track an index rather than prioritise dividend income, they may not be ideal for investors seeking high dividend payouts.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_Index_Funds\"><\/span><b>Understanding Index Funds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">An index fund is a type of mutual fund that aims to replicate the performance of a specific market index. It is a passively managed fund because the fund managers do not pick and choose individual stocks. Instead, they imitate the holdings of the particular index. This makes index funds a low-cost and long-term investment.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Investing_in_Index_Funds\"><\/span><b>Benefits of Investing in Index Funds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are many benefits to investing in an index fund, which is not readily available in many actively managed funds. Here are the different advantages of investing in index funds:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Avoidance_of_Fund_Manager_Bias\"><\/span><b>Avoidance of Fund Manager Bias<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Being a passive investment fund, <a href=\"https:\/\/www.torusdigital.com\/mutual-funds\/index-funds\"><strong>index funds<\/strong><\/a> are unaffected by the decisions of fund managers. Compared to actively managed funds, fund managers of index funds simply replicate the portfolio composition of its index. This takes away any biased opinions or mistakes in making decisions regarding fund management.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Lower_Fund_Management_Costs\"><\/span><b>Lower Fund Management Costs<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Since index funds track a defined index instead of requiring active stock selection, they have much lower expense ratios than actively managed funds. Moreover, investors pay less in management fees because the <a href=\"https:\/\/www.torusdigital.com\/toruscope\/mutual-funds\/rebalancing-your-portfolio\/\"><strong>portfolio managers rebalance<\/strong><\/a> the holdings only when the underlying index changes. This cost efficiency maximises returns over the long term.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Low_Concentration_Risk\"><\/span><b>Low Concentration Risk<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Index funds offer sufficient diversification by spreading investments across different sectors. This way, it is possible to reduce the impact of any one stock\u2019s poor performance by reducing the concentration risk.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Drawbacks_of_Index_Funds\"><\/span><b>Drawbacks of Index Funds<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Taking a closer look, it is observed that index funds have many drawbacks as well. Here are some of the major drawbacks of index funds:<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Absence_of_Direct_Investor_Control\"><\/span><b>Absence of Direct Investor Control<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">The index fund investors cannot decide the types of stocks and sectors they should have exposure to. Therefore, they need to accept all holdings, including underperforming stocks. Unlike actively managed funds, index fund investors cannot exclude specific stocks or industries. This can be unappealing to those who want an investment tailored for them.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Lacking_Sufficient_Downside_Management\"><\/span><b>Lacking Sufficient Downside Management<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">One of the primary disadvantages of index funds is their inability to respond to market declines. Since they track a predetermined index, they do not withdraw their holdings in a bear market or economic downturn. In contrast, actively managed funds will liquidate or shift to defensive assets or boost cash holdings to cut losses.<\/span><\/p>\n<ul>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"No_Room_for_Alpha\"><\/span><b>No Room for Alpha<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Index funds do not try to beat the market, instead, they try to replicate an index. This means investors will not get returns above the market average. Those seeking to beat the market returns may prefer actively managed funds where skilled fund managers apply their skills to beat the benchmark index.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Major_Differences_between_ETF_vs_Index_Fund\"><\/span><b>Major Differences between ETF vs Index Fund<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">While both <\/span><b>ETFs vs index funds<\/b><span style=\"font-weight: 400;\"> aim to provide diversified, passive investment strategies, they differ in how they are traded, managed, and structured. Here are the major differences between <\/span><b>ETFs vs index funds<\/b><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Feature<\/b><\/td>\n<td><b>ETFs<\/b><\/td>\n<td><b>Index Funds<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Trading Mechanism<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Traded like stocks throughout the day<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Bought and sold at NAV calculated once per day at market close<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Liquidity<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Highly liquid, can be bought and sold anytime during market hours<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Less liquid, transactions are processed at the end of the trading day<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Minimum Investment\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\">No minimum investment; investors can buy a single unit at market price<\/span><\/td>\n<td><span style=\"font-weight: 400;\">May require a minimum investment amount depending on the fund house<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Expenses<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Generally lower than index funds<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Slightly higher due to management fees<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Tax Efficiency<\/span><\/td>\n<td><span style=\"font-weight: 400;\">More tax efficient because of the in-kind redemption process<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Less tax-efficient as fund managers may need to sell holdings to cover redemptions<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Which_is_a_Better_Option_Index_Funds_vs_ETFs\"><\/span><b>Which is a Better Option: Index Funds vs ETFs?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Choosing between <\/span><b>index funds vs ETFs<\/b><span style=\"font-weight: 400;\"> requires you to consider factors like investment goals, risk appetite and trading patterns and strategies. Both ETFs and index funds have become popular in the Indian financial market. Both of these investment vehicles offer a diversified portfolio and lower risks from a passive investment strategy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want the flexibility of real-time trading and seek tax efficiency for large investments, investing in ETFs is a good option. Also, if you are comfortable managing trading costs, investing in an ETF should be your preference.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you want to avoid <a href=\"https:\/\/www.torusdigital.com\/brokerage-charges\"><strong>brokerage fees<\/strong><\/a> and prefer a long-term approach, index funds are where you will want to put your funds. Index funds also allow you to invest through an SIP which streamlines and balances your investments.\u00a0<\/span><\/p>\n<p><b>Index fund vs ETF<\/b><span style=\"font-weight: 400;\"> is always debatable, depending on the individual&#8217;s investment preferences. Both these investment funds provide excellent diversification and low costs. Therefore, understanding the <\/span><b>difference between index funds and ETF<\/b><span style=\"font-weight: 400;\">s will help you make an informed decision.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Final_Words\"><\/span><b>Final Words<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In conclusion, both ETFs and index funds serve similar investment purposes but cater to different investment needs and risk appetite. If you prefer trading and better tax efficiency, ETFs are a valuable option. Whereas, if you are a passive investor who wants simplicity in your investment approach, index funds are better. 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https%3A%2F%2Fwww.torusdigital.com%2Ftoruscope%2Fmutual-funds%2Fetf-vs-index-fund%2F\" class=\"whatsapp\" data-toggle=\"tooltip\" data-placement=\"top\" title=\"Share On WhatsApp\" target=\"_blank\"><i class=\"fa fa-whatsapp\"><\/i><\/a>\n        <a href=\"\/\/www.linkedin.com\/shareArticle?mini=true&url=https%3A%2F%2Fwww.torusdigital.com%2Ftoruscope%2Fmutual-funds%2Fetf-vs-index-fund%2F&title=ETF+vs+Index+Fund+%26%238211%3B+Key+Differences+You+Should+Know\" class=\"linkedin\" data-toggle=\"tooltip\" data-placement=\"top\" title=\"Share On Linkedin\" target=\"_blank\"><i class=\"fa fa-linkedin\"><\/i><\/a>\n    <\/div>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner el_id=&#8221;faq_blog&#8221;][vc_column_inner][vc_custom_heading text=&#8221;Frequently Asked Questions&#8221; font_container=&#8221;tag:h2|text_align:left|color:%23001316&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;&#8221;][\/vc_column_inner][\/vc_row_inner][vc_tta_accordion active_section=&#8221;1&#8243; el_id=&#8221;faq&#8221;][vc_tta_section title=&#8221;Are ETFs considered safer than index funds?&#8221; tab_id=&#8221;1741084133227-8bcfa4c5-0fa3&#8243;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">ETFs and index funds carry similar risks because they track the market index. However, the price volatility due to real-time trading in the case of ETFs may carry more risk to investors compared to index funds. <\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Which offers better returns: ETFs or index funds?&#8221; tab_id=&#8221;1741084133247-2a4cfc81-fdd1&#8243;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">There is a minimal return <\/span><b>difference between index funds and ETFs<\/b><span style=\"font-weight: 400;\">. However, ETFs track their respective indices more closely and generate better returns for investors compared to index funds. Also, ETFs have lower fees, which leads to better returns. <\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Can you invest in ETFs through Systematic Investment Plans (SIPs)?&#8221; tab_id=&#8221;1741084264816-a99716aa-062d&#8221;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">Yes. It is possible to invest in an ETF through SIPs. You can easily set up an automatic deduction of a fixed amount from your bank at regular intervals. <\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Do ETFs offer dividends?&#8221; tab_id=&#8221;1741084286999-7d3f4375-0a0b&#8221;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">Yes. ETFs pay dividends either by reinvesting them automatically or by sending them as cash payments directly to your account. <\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Are index funds exempt from taxes?&#8221; tab_id=&#8221;1742558008626-795e2a0f-adc7&#8243;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">No. Index funds attract capital gains tax at redemption time in India. However, if you keep your investments for three years or longer, your taxable gains at the time of indexation will be reduced. <\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Are index funds suitable for beginners?&#8221; tab_id=&#8221;1742558024232-18d9901c-bb12&#8243;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">Yes. Index funds are suitable for beginners because they are simple and managed passively. Also, you can set up a diversified portfolio at minimal fees with index funds. <\/span>[\/vc_column_text][\/vc_tta_section][vc_tta_section title=&#8221;Is it easier to trade ETFs than index funds?&#8221; tab_id=&#8221;1742558077453-d93a2147-3016&#8243;][vc_column_text css=&#8221;&#8221;]<span style=\"font-weight: 400;\">ETFs can be traded instantly on stock exchanges. On the other hand, index funds can only be bought or sold at the NAV price per day. So, it is easier to trade ETFs than index funds.<\/span>[\/vc_column_text][\/vc_tta_section][\/vc_tta_accordion][\/vc_column][\/vc_row][\/vc_section]<\/p>\n<p><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"BlogPosting\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.torusdigital.com\/toruscope\/mutual-funds\/etf-vs-index-fund\/\"},\"headline\":\"Exchange-Traded Funds vs Index Funds: A Comparative Guide\",\"description\":\"Explore the key differences between ETFs and index funds. Compare their structure, flexibility, and returns to determine which investment suits your financial objectives.\",\"image\":\"https:\/\/www.torusdigital.com\/toruscope\/wp-content\/uploads\/2025\/03\/Exchange-Traded-Funds-vs-Index-Funds.jpg\",\"author\":{\"@type\":\"Organization\",\"name\":\"Torus Digital\",\"url\":\"https:\/\/www.torusdigital.com\/\"},\"publisher\":{\"@type\":\"Organization\",\"name\":\"Torus Digital\",\"logo\":{\"@type\":\"ImageObject\",\"url\":\"https:\/\/dl4mfd6uvl13t.cloudfront.net\/static\/images\/webp\/logo.webp\"}},\"datePublished\":\"2025-03-21\",\"dateModified\":\"2025-08-18\"}<\/script><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\/\",\"@type\":\"BreadcrumbList\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.torusdigital.com\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Toruscope\",\"item\":\"https:\/\/www.torusdigital.com\/toruscope\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Mutual Funds\",\"item\":\"https:\/\/www.torusdigital.com\/toruscope\/mutual-funds\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"ETF vs Index Fund - Key Differences You Should Know\",\"item\":\"https:\/\/www.torusdigital.com\/toruscope\/mutual-funds\/etf-vs-index-fund\/\"}]}<\/script><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"[vc_section el_id=&#8221;blog-inner-layout&#8221;][vc_row overlay_dotted=&#8221;&#8221;][vc_column el_class=&#8221;blog_primary&#8221;][vc_row_inner][vc_column_inner][vc_column_text css=&#8221;&#8221;]Investing in financial markets requires careful selection of funds. 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