MY EXACT Dividend Stock Portfolio -- See it in M1 Finance! || https://m1.finance/k8qmCoo7rDQu Most people know that Vanguard Investments are a GREAT INVESTMENT for the Average Joe Investor out there, but you might be thinking about this question: "Should I choose Vanguard Index Funds or Vanguard ETF's?" In this video, we are going to cover 4 Key Considerations you need to think about before you can decide between Vanguard Index Funds vs. ETF. We are talking Vanguard Index Funds for Beginners in this video. Here on the Average Joe on Money channel, we talk about all things, Personal Finance, that affect people like you and me, THE AVERAGE JOE. So whether it's how to build your very first budget, how to get rid of your consumer debt as quickly as possible, how to build your credit and use credit cards safely and responsibly, or how to save and invest your money for the future, this channel is your one-stop shop. KEY CONSIDERATION #1 - Manual vs. Automated Investing One of the biggest benefits to Vanguard Index Funds is you can elect to set up recurring investments from your checking account and make your investments automated and you cannot do this with your Vanguard ETF investments. That being said, you have the ability to purchase Vanguard ETF's from any brokerage firm you have investments with and with certain investment firms, such as M1 Finance, you can set up recurring investments to the account and then from there, electing to invest into your existing investment pie is very simple and requires just a click or two. At the end of the day, this consideration doesn't mean too much to me and it shouldn't be a deal breaker either. KEY CONSIDERATION #2 - Expense Ratios We can all agree that Vanguard Investments in general, regardless if they are Vanguard Index Funds or Vanguard ETF, have really low expense ratios. That being said, Vanguard ETF's tend to have slightly lower expense ratios as Vanguard themselves have said the large influx of cash into Vanguard ETF's over the past few years has allowed them to be even more cost efficient which has led to lower fees. At the end of the day though, even if Vanguard's S&P 500 Index Fund VFIAX has an expense ratio of 0.04% and Vanguard's ETF version is 0.03%, that only equates to a $1.00 savings every year on $10,000 Vanguard investments. KEY CONSIDERATION #3 - Minimum Investment Requirements All Vanguard Index Funds have a minimum initial investment of at least $3,000, but did you know that some of them have a minimum investment of $50,000 or $100,000?! While this is true, the minimum investment for any Vanguard ETF is the cost to buy 1 share of the ETF! Furthermore, at brokerages like M1 Finance, you can buy fractional shares of ETF's or even individual stocks. This could be a deal breaker for the Average Joe out there who is just starting out investing. KEY CONSIDERATION #4 - Investment Mix The truth of the matter is, Vanguard Index Funds are usually only able to be purchased from Vanguard. Most investment companies are NOT in the business of selling other companies index funds when they can sell a similar product themselves. You can purchase ETF's with ANY BROKERAGE, and many now allow completely FREE investing with no fees other than the underlying expense ratio for the ETF.