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Getting out of actively managed funds is a good idea. The real question is index funds vs. ETFs. Index funds have the same advantages as ETFs (very low management fees, track the market not try to beat the market etc.), but there are some differences.
The most important thing to consider is how often you plan on putting more money into your investments. With ETFs, the only way to increase your investment is by buying more shares. Each time you buy more shares, you get hit up for a broker's commission. That 10 or 15 bucks a trade can put a real ding in your returns if you do it often enough. No load index funds, on the other hand, will let you increase your investment for no charge. This isn't a big deal if you only plan on dumping in more money once or twice a year, or if you're dealing with five figure or larger sums, but it can be a pain otherwise.
There are some other differences. ETFs are slightly more tax efficient, and are more liquid (since you can trade them like stocks). But these are less important.
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