To most investors the differences between an ETF and mutual fund aren’t readily apparent. They both hold selections of individual investment securities; however, there are important distinctions in how they are constructed and how they trade. Selecting one over the other depends on several factors including time horizon, tax considerations and investment strategy. To most investors, the differences between an ETF and mutual fund aren’t readily apparent. They both hold selections of individual investment securities, however, they are constructed differently and trade differently. Selecting one over the other depends on several factors including time horizon, tax considerations and investment strategy.
Just like mutual funds, ETF’s can be an efficient strategic tool in an asset allocation. For additional information or questions, call Jenifer Aronson at 773-425-6790.
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