The Difference Between Index Funds and ETFs

Active investing can be quite costly, whereas passive investing generally is cheaper. And lower fees means more money for you. We need to understand the difference between index funds and ETFs. Often they get mixed up and often people think they're the same thing.ETFs are basically a stock-like product which represents a bunch of companies in the index that it tracks. The price of the units associated with the index fund is determined at the end of the day.