<\/span><\/h2>\n\n\n\nHere are some key differences Between ETF vs Index Funds:<\/p>\n\n\n\nPoints of Differences<\/th> ETFs<\/th> Index Funds<\/th><\/tr><\/thead> Pricing<\/td> The price of an ETF changes all day long, just like the price of a stock.<\/td> Index funds are priced based on their NAV, or Net Asset Value. The AMC puts out the NAV at the end of each day.<\/td><\/tr> Listing on the Stock Exchange <\/td> The stock market has a list of ETFs.<\/td> There is no list of index funds.<\/td><\/tr> Liquidity<\/td> At the current market price, they are simple to buy and sell at any time.<\/td> When the cut-off times come around, index funds can only be bought and sold at the NAV. But it must be easy for you to sell the units.<\/td><\/tr> Need of a Demat account<\/td> In order to keep the ETF certificates, you must have a Demat account.<\/td> To keep the ETF certificates, you must have a Demat account.<\/td><\/tr> Availability <\/td> The stock market has a list of ETFs that can be bought and sold like stocks.<\/td> The website of the mutual fund house or the website of a stockbroker, like Dhan, can help you find index funds.<\/td><\/tr> SEBI Rules<\/td> ETFs have to put at least 95% of their money into stocks that are in a certain group.<\/td> For index funds, the minimum percentage rule stays the same, at 95%.<\/td><\/tr> Analysis Required<\/td> Because the price of an ETF changes all the time, you can keep looking at it.<\/td> Because their NAV doesn’t change every second, you don’t have to keep looking at index funds.<\/td><\/tr> Intraday Trading<\/td> For day dealing, ETFs can be bought and sold like stocks.<\/td> You can’t trade with index funds during the day.<\/td><\/tr> Arbitrage<\/td> You can trade between the cash market and the futures market with ETFs.<\/td> Arbitrage does not happen with index funds.<\/td><\/tr> SIP or Lumpsum<\/td> The ETF can be bought in large amounts, just like stocks. Dhan gives you the choice to use SIP to invest in ETFs.<\/td> In index funds, you can either put money in overtime (SIP) or all at once.<\/td><\/tr> Presence of Tracking Error<\/td> When you buy ETFs, there is a tracking mistake.<\/td> Index funds are exposed to a tracking error.<\/td><\/tr><\/tbody><\/table> <\/figcaption><\/figure>\n\n\n\n