Vanguard vs. Blackrock Funds:

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 Is One Better Than  the Other?

If you’re an owner of an exchange-traded fund (ETF) or index fund, chances are they are from either Vanguard or Blackrock. These two companies are the powerhouses in the industry.

Index Funds, Exchange-Traded Funds, and Mutual Funds

Before we get into some of the differences in Vanguard vs. Blackrock funds, let’s first cover some of the terminologies. All three are similar though there are subtle differences.

Index Funds

Index funds represent a theoretical segment of the market and aim to match the risk and reward of a specific need. Index funds only trade once per day after the market closes.

Exchange-Traded Funds (ETF)

An ETF can be bought and sold throughout the day on an exchange instead of trading day end. ETFs also typically have lower minimum investments compared to index funds.

Mutual Funds

Mutual funds can be much broader than passively managed index funds or ETFs. Some mutual funds will combine stocks, bonds, and even other assets into certain funds in their attempt to outperform the market.