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Index Funds vs. Mutual Funds: The Key Differences

Credit: Phil Towns

From NerdWallet.com…..

There are a few differences between index funds and mutual funds, but here’s the biggest distinction: Index funds invest in a specific list of securities (such as stocks of S&P 500-listed companies only), while active mutual funds invest in a changing list of securities, chosen by an investment manager.

This distinction has a few knock-on effects:

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