As more Americans take a hands-on approach to their finances, many are weighing whether to invest in exchange-traded funds (ETFs) or mutual funds.
Both offer a simple way to build a diversified portfolio of stocks or bonds, and at their core, the two investment vehicles are very similar. But key differences – including how they trade and how they are taxed – can shape long-term returns, experts say.
“When investors compare ETFs and mutual funds, it’s important to start with what they have in common: both are professionally managed portfolios that provide diversified exposure to stocks or bonds,” Kathy Kellert, head of index equity product at…
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