Mutual Fund vs Index Fund vs ETF | DISSECTED FOR BEGINNERS

[@DiamondNestEgg]

Thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances. Everyone's financial journey is different. If you wish to set up a consultation call & discuss whether we can help you on an individual basis, please complete the Work With Us form on our website: www.diamondnestegg.com So are you for mutual funds, index funds or ETFs - drop us a comment below and let us know! 😀 You can also download our free financial goal-setting & budgeting templates from www.diamondnestegg.com & start getting your finances on track straight away with our detailed step-by-step budgeting guides! POPULAR PLAYLISTS! 💰 Emergency Funds and Saving Smarter: kzbin.info/aero/PLsv_4H5rP97HAQN6--XeMyXgKyXOfMuXW 💰 Budgeting for Beginners: kzbin.info/aero/PLsv_4H5rP97GiJsE9l3xk7XVSgN0UqpxS 💰 Retirement: kzbin.info/aero/PLsv_4H5rP97Ezg5K3FXLsBS8Xz2JCGiAI 💰 Life Insurance: kzbin.info/aero/PLsv_4H5rP97EiTHj1jmUf5wJn0uNbC8Gf 💰 Credit Scores & Paying Off Debt: kzbin.info/aero/PLsv_4H5rP97FXfO4p_MvsHPxHGyR6HbES

[@EricMcDowellegm]

I think index funds are best for my particular situation. This has been such a helpful video (as they all are!) Thanks so much for what you do, Jennifer!

[@stevenhudson7313]

Excellent comparison. Thank you.

[@JamesBrierly-ou3se]

Thank you

[@elizabethmartinez2864]

Thanks!

[@CDConfidence]

I've started binge watching your videos and you are the first person who I can clearly understand. Love the way you take your time and explain things. You will be my #1 go to. Subscribed!

[@carolynhestandkennedy]

Me too. Great stuff. Thank you 🤑

[@tonys8613]

Everyone should see your videos starting in their school years!

[@DiamondNestEgg]

That's what I'm making my kids do!

[@Hope1079]

I always wondered what the differences were. And now I know. Thanks!

[@danielmcgowan113]

I want to thank you for your videos. I have gained an appreciable amount of information from them - especially those on I-bonds. I do have to say that, in regards to ETF's, a couple of your cons do not apply to E*Trade accounts. I buy and sell ETF's with no commissions. Also, E*Trade will re-invest dividends automatically, and with no commission. At least, that is the case with my E*Trade accounts.

[@DiamondNestEgg]

Thanks for this. This video is due for an update soon - I’ll be sure to include your feedback!

[@thomasgebert6119]

Good video, though it does make me a bit curious; if I plan on holding onto my shares for a long time anyway, and my broker doesn't charge a commission fee to buy new shares, and it offers a DRIP on all my ETFs, is there a fundamental difference between ETFs and index funds? Assuming I plan on holding onto my shares until retirement, it doesn't seem like choosing either matters all that much. The reason I ask is because I already had an ETrade trading account, and I started buyingS&P500 ETFs just because I figured that was the lowest-effort way of passively investing, but I'm wondering if I should have done an index fund instead.

[@bobrowe7010]

Thanks for the information. Index funds seem like the best option generally speaking. At least for me. Great job as always!

[@rongarcia6582]

Great channel. I'm working my way through a bunch of your videos! I mostly have index funds in my 401k and IRAs, and ETFs in my taxable investment accounts. We use both Fidelity and Vanguard, but are looking to consolidate all our accounts with one broker for ease of access.

[@mel-in-portland]

Thank you for your video! You mention that with Index Funds, you can do DRIP (div reinvestment), but not with ETFs. With an ETF, do dividends accumulate in your cash position? Curious why you can't do DRIP with most ETFs. I would think the inability to do DRIP would have a negative impact on performance over time (as compared an index fund with DRIP and comparable expense ratio) because money would not be instantly going back to work for you, but rather sitting in a cash position until reinvested. Maybe if you plan to hold for a long period of time, index fund is better than an ETF all else being equal?

[@jimg8296]

U R Awesome

[@RobertJory10]

I was wondering if you can explain the difference of these as far as what I call "the redemption effect". For example, if people start closing their mutual fund positions, doesn't the mutual fund have to sell something in the fund in order to pay the client who is closing their position? If a ton of people are closing their account, this forces the mutual fund to sell a lot of stocks which in turn causes the price of the stocks in the fund to fall. A spiral down effect. Does an index fund have to sell their positions in the same way?

[@DiamondNestEgg]

Index funds are simply a type of mutual fund & as I understand it, would be impacted in the same manner.

[@danieloherrick6332]

My wife and I both have SEPs invested in stock/bond mutual funds, ETFs, and Index funds. Don't anticipate needing any withdrawals until 2025. With the current market turmoil, would it make sense to suspend dividend and capital gain reinvestments and save the cash (re-evaluate market conditions each quarter). We are early 70s and have cash in taxable accounts for 2-3 years. Thanks

[@DiamondNestEgg]

Hi Daniel. I don't know your individual circumstances, so can't really make a recommendation in this case unfortunately.

[@vencebuchanan]

❤