ETF’s, a mutual funds cute sister

In 2008 the SEC (Securities and Exchange Commision) started to allow actively managed ETFs, or exchange traded funds (which act like stocks and bonds with regards to options and trading), hence the reason for my writing this article. Without the opportunity for investment managers to make money off you, those same managers probably wouldn’t talk about this fund that has been available since the early ninties. More or less, ETF’s are the exact same thing as mutual funds, however, ETFs have the ability to be traded anytime during the trading day, while mutual funds can only trade at the end of the day.

Here are a few key reasons ETF’s are cuter than mutual funds:

1. They are less costly than mutual funds (less fees generally)
2. They give you the ability to trade in live time, instead of having to wait until the end of the day like mutual funds.
3. They provide lower taxes because of lower turnover.
4. They provide more transparency so you know what you are actually investing in.

Here is a list of ETFs.


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