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foobar73 was correct in what he stated, but there are times you may wish to purchase the ETF instead of the index fund. The main factor in this is where is your money at? For example, if you have your money in Ameritrade and wanted a S&P500 index then you will pay a $18 fee to purchase it. Purchasing an ETF would only be $8. Also are you planning on buying and holding the index? If so then expense ratio would be even more of a MAJOR concern and there are more reasons to purchase the more traditional index. If instead your are planning on holding for a short time and then possibly purchasing some individual stocks then it makes more sense to purchase an ETF.
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