What is the difference between Regular Mutual Funds and Exchange Traded Funds [ETFs]? Which are better?
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ETFs are mutual funds that trade like stocks on an exchange.
They have low expense ratio
They are priced continuously through out the day unlike mutual funds which are priced at net asset value once a day at the close of business
But, usually we have to use a broker each time you buy or sell ETFs leading to commissions to pay
Vanguard offers low cost ETFs and are commission free.
You can’t make automatic investments or withdrawals into and out of ETFs unlike a mutual fund for which you can set up automatic investments and withdrawals into and out of a mutual fund.
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