Last Updated: Saturday, July 7, 2018

What is ETF? How does it differ from Mutual Funds | 2018

What is the basic difference between ETFs and Mutual Funds



  • What is ETF?
  • What is an ETF index fund?
  • What is an exchange traded fund?
  • Mutual Fund Vs ETF: Which is Right For You? ETF vs Mutual funds India
  • ETFs vs Mutual funds long term
  • ETF vs Mutual fund performance
  • ETF vs Mutual funds pros and cons
  • ETF vs Mutual fund vs Index fund
  • ETF vs Mutual fund vanguard
  • Best ETF in India


ETF or Exchange Traded Fund

ETF or Exchange Traded Fund is an investment fund which is traded on the stock exchange. The assets held under an ETF are commodities, stocks and bonds. These are traded for an amount close to the original net asset value of the asset, during a trading day. A bond index or stock index is tracked by most ETFs. The price of the ETF can vary throughout the day. Generally, ETFs have lower fees..read more>>

Mutual Funds

Mutual Funds are a professionally managed investment funds that trades in diversified holdings. Funds are pooled from various investors and invested with the assistance of professionals. The investment portfolio includes bonds, money market instruments, stocks or a combination of all. The investor owns a share of the mutual fund and reap the same benefits or ...read more>>

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Difference between exchange-traded funds and mutual funds


ETFs trade throughout the trading day, like stocks, while mutual funds trade only at the end of the day at the net asset value (NAV) price. Most ETFs track a particular index and as a result have lower operating expenses than actively-invested mutual funds. Thus, ETFs may improve your rate of return on investments. In addition, ETFs have no investment minimums or sales loads, unlike traditional mutual funds, which often have both. Most indexed mutual funds, however, will not have sales loads. 

Taxes and Rate of Return

ETFs create and redeem shares with in-kind transactions that are not considered sales. Thus, taxable events are not triggered. Redemptions create tax events in mutual funds, but they do not create tax events in ETFs.

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Similarities of Mutual Funds and ETFs

Many investors that want to learn about exchange-traded funds (ETFs), try to find information about how they are different than mutual funds. But before going over the differences between the two, there are actually a few key similarities that are valuable to know.

Here's how mutual funds and ETFs are alike: Read more >>>

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