The practical difference
Index (passive) funds aim to track a market benchmark at low cost. Active funds employ managers who try to outperform a benchmark — usually with higher ongoing charges and no guarantee of success.
What to compare
Look at ongoing charges, tracking difference (for index funds), the fund’s objective, and whether it fits inside your ISA or SIPP. Past outperformance is not a reliable promise of future results.
See [ETF investing basics](/guides/investing/etf-investing-basics) and compare live products on [funds & ETFs](/invest/funds-and-etfs).