Ep48. Index ETFs vs Index Funds 指数ETF vs 指数基金

#Index ETF #Index Fund

In my previous posts I had recommended investing in low-cost, globally diversified, index tracking ETFs (Exchange-Traded Funds) or funds, and hold them for long time. However, are index ETFs and index funds the same? Which one should we buy? Both index ETFs and index funds are investment vehicles designed to track the performance of a specific market index, such as the S&P 500. Here are the key similarities and differences between them:


  1. Index Tracking: Both aim to replicate the performance of an underlying market index, providing investors exposure to a diverse portfolio of assets.
  2. Diversification: They offer a broad range of assets within the index, spreading risk across multiple companies and industries.
  3. Passive Management: Both are passively managed investments, meaning they don’t rely on active portfolio management but instead mirror the index’s composition.
  4. Lower Costs: Generally, both tend to have lower expense ratios compared to actively managed funds.


  1. Trading Structure: ETFs trade on stock exchanges like individual stocks throughout the trading day, with prices fluctuating based on supply and demand. Index funds are priced and traded at the end of each trading day based on the net asset value (NAV) of the underlying assets.
  2. Minimum Investment: Index funds often have minimum investment requirements, whereas ETFs do not, allowing investors to purchase any number of shares.
  3. Flexibility: ETFs offer intraday trading flexibility, allowing investors to buy and sell shares at any point during market hours. Index funds are traded once a day, after the market closes.
  4. Costs: While both generally have lower expenses compared to actively managed funds, ETFs may have slightly lower expense ratios due to their unique structure.

Overall, both index ETFs and index funds are popular choices for passive investors seeking exposure to the broader market’s performance with lower costs and reduced risk. The choice between them often comes down to an investor’s preferences, investment strategy, and specific needs. 



  1. 指数跟踪:两者都旨在复制底层市场指数的表现,为投资者提供对多样化资产组合的曝露。
  2. 多样化:它们提供了底层指数内广泛的资产选择,将风险分散在多家公司和行业之间。
  3. 被动管理:两者都采用被动管理方式,意味着它们不依赖主动投资组合管理,而是复制指数的构成。
  4. 低成本:通常,相较于主动管理基金,两者的费用率较低。


  1. 交易结构:ETF像个别股票一样在交易所内交易,其价格在交易日内根据供求情况波动。指数基金的价格是基于底层资产的净资产价值(NAV),每个交易日结束时进行交易。
  2. 最低投资额:指数基金通常有最低投资要求,而ETF没有,投资者可以购买任意数量的股份。
  3. 灵活性:ETF提供了交易日内灵活性,允许投资者在市场交易时间内任意买卖股份。指数基金在交易日结束后进行交易。
  4. 成本:虽然两者通常费用率都较低,但由于其独特结构,ETF可能具有稍低的费用率。


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