Before we get into some of the differences in Vanguard vs. Blackrock funds, let’s first cover some of the terminologies.
An index fund is a type of mutual fund or ETF, though the unique aspect always matches the components of an index or specific financial market. Index funds represent a theoretical segment of the market and aim to match the risk and reward of a specific need.
An exchange-traded fund (ETF) typically matches an index similar to index investing. However, an ETF can trade on an exchange, one of the most significant differences between an ETF and an index fund.