When you’re fairly new to investing in the stock market, you’ll need to put some effort into learning some key terminology. Let’s assume you’re a retail investor, not an institutional investor, so you’ll want to determine your best bet for long-term results in your investments. Here are some useful guidelines for how to choose between index funds and ETFs.
If you’re planning on investing to make money on a day-to-day basis, that’s a lot more complicated. But for the more common purpose, a vast majority of us are investing for retirement. When creating your investment portfolio, you might build much of it from index funds or ETFs.
