What's The Difference Between a Mutual Fund and an ETF?
b'
Are you torn between investing in a mutual fund or an ETF?
Both mutual funds and exchange-traded funds (ETFs) are alike in many ways but also have a few differences. They both make investing very easy and represent diversification.
In this episode of the Secure Your Retirement podcast, we talk about the differences between a mutual fund and an ETF. Listen in to learn why ETFs are more efficient and low-cost as compared to mutual funds and are suitable for anyone looking to be actively managed.
In this episode, find out:
- Defining a mutual fund \\u2013 a fund with a purpose that can represent multiple stocks.
- How a mutual fund operates on an \\u201cend of day pricing\\u201d during purchase and sale.
- How an ETF operates the same way as an individual stock and can be sold or bought at any moment of the day.
- The actively managed advantage that both mutual funds and ETFs offer.
- A mutual fund has a higher expense ratio compared to an ETF which is more efficiently managed.
- An ETF enables you to get in and out of the market without having to wait for the market to close.
Tweetable Quotes:
- \\u201cA mutual fund is designed as a company that is there to make a profit, and so it\\u2019s going to have a manager, a team under the manager, and all the overhead that it takes to manage it.\\u201d- Murs Tariq
- \\u201cThere\\u2019s no way to invest for free; you\\u2019re always going to have some fees in whatever investment you choose.\\u201d- Murs Tariq
- \\u201cIf you\\u2019re trying to decide between a mutual fund and an ETF, it\\u2019s worthy to try to figure out how each works.\\u201d- Radon Stancil
Resources:
If you are in or nearing retirement and you want to gain clarity on what questions you should be asking, learn what the biggest retirement myths are, and identify what you can do to achieve peace of mind for your retirement, get started today by requesting our complimentary video course, Four Steps to Secure Your Retirement!
To access the course, simply visit POMWealth.net/podcast.
'