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What are the differences between Stock Market Index & Exchange Traded Funds?


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An Index is just a way to keep track of how the entire market is doing.

An ETF is an investment vehicle. Its like a share on a basket of stocks. This basket of stocks can either track (ie try to match the performance) an index (SPY tracks the S&P500, QQQQ tracks the NAsdaq 100) or just a specific secto (XLE tracks energy)

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