I am planning to invest around 6k. Is it better to invest in Index funds or ETFs. please suggest.
Between funds and ETFs, ETFs are more liquid, you can trade them real-time as stocks. Check which one is cheaper too, that may help you to decide
VTI
buy fidelity zero fee index
What’s the name of it ?
FZROX
VOO is the EFT. VFIAX is the non - ETF version (admiral). For long term investing, I'd recommend VFIAX
Why
You’ll be fine either way if you choose a strategy and stick to it. Best to read about it and choose for yourself. Do you have a Vanguard account? If not, then choosing the ETF is probably your best bet because the mutual fund will likely have higher fees and charge commissions. Will you be making one purchase or expect to invest more over time? If investing multiple times a year, then the mutual fund is a good approach when it is free of commission as it lets you invest dollar amounts instead of buying whole shares, which leave some amount uninvested. But check fees and expense ratios which may be higher than ETF, depending on your fund. If outside of a Vanguard account, you can find a commission-free ETF that fills your needs then perhaps that’s a good approach, especially if you’re just doing a one time investment. ETFs are also nice for taxable accounts when they add some tax efficiencies. But index mutual funds are also pretty tax efficient overall anyway. So you’ll likely be good with either. https://www.fool.com/investing/2018/08/17/etf-vs-index-mutual-fund-which-ones-better.aspx
Grab the s&p 500 index fund and leave it there. The mutual fund is fine on vanguard.
For mutual fund u can setup auto investing on monthly basis and forget about it. For etf u will have to do manual repurchase. Fee vice the admiral share and etf will have same expense ratio.
All index funds are ETFs. Not all ETFs are index funds. Consider a REIT (Im partial to real estate investments) but index funds are always safe and smart for steady, long term (10+ years) gains. Don't listen to anyone who tells you otherwise As WD said below, you should always look at the expense ratio of a fund and target funds under .1% expense ratio. .1% sounds cheap, but it's relatively expensive
I said .1
Also REITs are almost entirely dividend return. If it’s not in a tax-deferred account, it will really screw you.