ETFs VS Mutual Funds - EFT Education
October 12 2011 - 10:45AM
Zacks
ETFs VS Mutual Funds
Trading - ETFs can be traded
throughout the day just like stocks, mutual funds are traded only
once a day, at the end of teh price of the fund or the NAV is
calculated.
Expenses - ETFs expense ratios range from .10% to
1.99%, mutual fund expense ratios range from .10 to 8%.
Taxes- ETFs offer better tax structures for
investors, since 95% of all ETFS are passively managed and
therefore realized lower capital gains. Mutual Funds on the other
hand are actively managed and therefore have higher turnover and
thus higher tax rates for investors.
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