1. It is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.
ETFs and Mutual Funds Difference
1) Unlike mutual funds, an ETF trades like a common stock on a stock exchange.
2) ETFs share prices fluctuate all day as it is bought and sold.
3) MFs only trade once a day after the market closes.
4) ETFs typically have higher daily liquidity and lower fees than MF shares.
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