Are ETF (Exchange Traded Fund) and mutual funds the same thing? Which is better?Asked
An Exchange Traded Fund (ETF) is a marketable security that track indexes like NASDAQ-100. S&P500, etc.
A mutual fund is an investment vehicle that collects money from investors and invests on their behalf.
The main differences between ETF and mutual funds are:
Exchange-traded fund(ETF) is kind of an index fund that invest in an index, a commodity, currencies, bonds etc. A mutual fund is an investment instrument, basically collection of stocks and/or bonds, managed by professionals of an asset management company.
Let’s see how both are different.
So, after going through differences between both the investment scheme, you will be able to make better investment decisions. ETFs are only 25 years old investment instruments, growing in popularity exponentially.