Mutual Funds vs Index Funds vs ETFs | This video explains the differences between these 3 investments and the pros and cons toward which ones you should buy! This video uses visual animations to help you better understand Mutual Funds, Index Funds, and ETFs. ⚠ Must Watch Video https://youtu.be/RtfZvxkqC2A Free Investing For Beginners Guide: https://dannysully.link/Investing101 Top Financial Products To Consider: 🏦 High Yield Savings Accounts: https://dannysully.link/Savings 📈 Investing Platforms: https://dannysully.link/Investing 🔒 Certificate Of Deposits (CDs): https://dannysully.link/CDs Resources: 📚 Free Learning Guides: https://dannysully.link/FreeGuides 🗞️ Newsletter: https://dannysully.link/Newsletter 🔑 Patreon (My Portfolio & Exclusive Content) - https://www.patreon.com/dannysully 🎥 Relevant YouTube Videos 🎥 https://youtu.be/Cp1kJLCP9dg?si=4-VIYJFhZusnBGyU https://youtu.be/MO6mWar8eyI?si=nd5dINa6OPbH44aS https://youtu.be/qKhpxXyQ4AQ?si=ipSJ4MfPbC6Beb5j https://youtu.be/emdZ2aSFQow?si=45_yh3jFihbYo4tj https://youtu.be/jQkFOJ5jvaw?si=Lcje59urou4yM1do https://youtu.be/HtTwal5Yzoo?si=7pxQujQXyHxVtQFC ⏰ Timestamps ⏰ 00:00 Intro 02:13 Mutual Funds 05:35 Index Funds 09:29 ETFs 10:18 Detailed Summary 📝 What are Investment Funds? Investment fund in simple terms is a gathering of securities such as stocks or bonds where you as an investor can buy this fund and receive exposure into many securities all within one purchase. What is a Mutual Fund? Many mutual funds are actively managed funds that contains securities that are decided upon and managed by a person known as a money manager or fund manager. There are also passively managed mutual funds that track an index such as the Fidelity 500 Index Fund (FXAIX). What is an Index Fund? An index fund is a passively managed fund which is a type of mutual fund but instead of being human operated it is by a computer and the algorithm tracks companies that resemble particular markets at a much lower cost. What is an ETF? An ETF (Exchange Traded Fund) is a fund that mostly tracks particular indexes, although there are some that are actively managed. The main differences are that an ETF trades similar to an individual stock and also much more tax efficient by the structure of an ETF (For more information on the taxes, let me know in the comments and I will make an in-depth video on it). In my opinion, anything that tracks an index is the way to go. Although some investors believe active Mutual Funds are the best, this video explains exactly what you need to know about each and why you may be much more interested in Index Funds (both ETF/Mutual Fund). All in all, I only invest into index ETFs and index Mutual Funds. Understanding the differences between these investments is crucial because it can have a significant impact on your retirement. Don't let time keep passing, let your money work for you. If you found any value in this content please consider hitting the like button and subscribing as I continue spreading the highest quality content related to "money talk" to impact as many lives as possible. 🔔 Don't forget to subscribe with notifications on and hit that like button! Sources: - S&P Dow Jones Indices Research: https://www.spglobal.com/spdji/en/research-insights/spiva/ - Blindfolded Monkey: https://prosperitythinkers.com/personal-finance/three-monkeys-and-cat-pick-stocks/ - Ray Dalio Hedge Fund: https://www.nytimes.com/2017/10/16/business/dealbook/bridgewater-associates-endowments.html Disclaimer: Certain links on this website lead to products or services that may earn Danny Sully an affiliate commission or referral bonus. As a member of an affiliate sales network, Danny Sully is compensated for directing traffic to partner websites, which may affect the placement or visibility of some products on this site. The information provided in this video is accurate as of its posting date, though some of the offers mentioned may no longer be active. This content is for entertainment only and does not constitute legal, tax, or financial advice. It is for general informational purposes. The presenter is not a licensed professional. Viewers should consult their attorney, accountant, or financial advisor for advice on specific legal, tax, or financial issues.