Index Funds vs ETFs: 2026 Comparison
Verdict for Passive Income: It's a Draw
Performance Edge (10y): ETFs
Performance Edge (10y): ETFs
While both are excellent, ETFs edges ahead due to slightly better historical returns and lower volatility, making it the ideal core holding.
Dividend Yield
10y Return
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Yield-focused investors won't find a meaningful difference here—Index Funds and ETFs both deliver comparable income.
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Head-to-Head Metrics
Direct comparison of key investment characteristics
| Metric | Index Funds | ETFs | Contextual Difference |
|---|---|---|---|
| Beta (Volatility) | 1.00 | 1.00 | Effectively the same |
Beta (Volatility)
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