Exchange Traded Funds & Mutual Funds- What’s the Difference?
Do you know the difference between mutual funds and exchange traded funds, also known as ETF’s? Many of you are probably familiar and may even own mutual funds, but do you know what an ETF is? According to Investopedia, “an ETF, or exchange traded fund, is a marketable security that tracks an index. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. ETF’s experience price changes throughout the day as they are bought and sold. ETF’s typically have higher daily liquidity and lower fees than mutual funds, making them an attractive alternative for individual investors.” This Sunday on Redefining Retirement, we’re going to share with you the four ways that mutual funds and exchange traded funds are the same, and then we’ll look at six ways that they are different to help you determine which may be the better choice for you. You see, in today’s world, the exchange traded fund industry is exploding, and many financial experts would tell you that ten years from now, we may not see mutual funds anymore. So, why are exchange traded funds growing so much and why are people transitioning from mutual funds to exchange traded funds? Tune in this Sunday at 5:30 p.m. on Channel 2 to get the answers to these questions.