Mutual funds vs. ETFs: What’s the difference?

Mutual funds vs. ETFs: What’s the difference?

Understanding the differences between mutual funds and ETFs is essential for investors aiming to customize their portfolio. Mutual Funds offer professional management and diversified holdings but often come with higher fees and require minimum investments. In contrast, Exchange Traded Funds (ETFs) provide flexibility with real-time trading, typically lower costs, and no investment minimums. Both investment vehicles have their unique advantages, making the choice between mutual funds vs. ETFs pivotal for achieving specific financial goals. This comparison helps investors discern which option aligns best with their investment strategy.