Are ETFs better than index funds?

Some ETFs actually are index funds, so it depends how you look at it. If you're thinking of an index fund as your traditional unlisted investment fund, then both can be advantageous depending on how you use them. The benefit of choosing an ETF is you can invest smaller amounts more frequently and easily through a trading app. With an unlisted index fund, you often need $5,000 or more as a minimum investment and will need to go through an application process to add more funds or withdraw.

Is VAS an ETF or an index fund?

VAS is an ETF that passively tracks the ASX 300 index – so it's both an ETF and an index fund.

Can you lose money in an index fund?

Yes. Like all investments, index funds can go down in value depending on market performance.

Are ETFs riskier than index funds?

Some ETFs are index funds, which can be a relatively safe share market investment. However, some ETFs also use leverage or derivatives or track a single commodity, making them very high risk.

What's the main difference between ETFs and index funds?

An ETF is a product structure that trades like a stock. An index fund is a strategy that tracks a market index, and it can be delivered through an ETF or a traditional managed fund.