Note: This article is courtesy of Iris.xyz

By Shundrawn A. Thomas

Exchange traded funds (ETFs) and mutual funds can accurately be characterized as “sister” investment products because of their many similarities:

Both are basically baskets of investments and offer a diverse range of investment types and strategies;

Because a single fund can hold hundreds of individual stocks, bonds or other types of investment instruments, both ETFs and mutual funds can help mitigate investment risk; and

Both are professionally designed and managed, ensuring investors of a certain level of trustworthiness and credibility. But the similarities stop there.

ETFs and mutual funds sometimes have significant differences in everything from fees and expenses, accessibility and minimum investments, to tax efficiency and trading costs. Both ETFs and mutual funds can be a viable part of an investor’s strategy. Which is the better choice depends in large part on an investor’s overall goals and approach to investing.

To make informed decisions about which product can best meet their needs, investors should understand the key differences between ETFs and mutual funds.

Click here to read the full story on Iris.xyz.

Trending on ETF Trends

4 Reasons Why an ETF is Good for RIAs

7 Reasons Why an ETF is Today’s Mutual Fund Alternative

How to Choose an ETF That’s Right for a Portfolio

A Common Investor Question About Understanding ETF Liquidity

BlackRock Reveals ETF Managed Portfolio Assets Much Larger Than Expect...