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Introduction to Mutual Funds or Exchange-Traded Funds--Which to Choose?

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ETFs appeal to different types of investors. Find out more in this course on ETF suitability; we will cover costs, trading, and taxes.

What you will learn

  • Mutual Funds or Exchange-Traded Funds--What Type of Investor Are You?
  • Mutual Funds or Exchange-Traded Funds? Considering Taxes
  • Mutual Funds or Exchange-Traded Funds? Considering Costs

What do you know?

Introduction to Mutual Funds or Exchange-Traded Funds--Which to Choose?

Traditional open-end mutual funds have long been the staple of many investors' portfolios. Over the past decade, however, an alternative has emerged—exchange-traded funds. While ETFs have been around since the early 1990s, their popularity has soared in recent years, and they are being used by more and more institutional investors, financial advisors and individual investors. In addition, ETFs are popping up in company retirement plans. ETFs are very similar to mutual funds, but there are a few differences.

So, how do you tell whether an ETF or a conventional mutual fund is best for you? Here are some things to consider: