Here are the Differences Between a Mutual Fund and an ETF
Mutual funds and exchange-traded funds (ETFs) are more similar than not.
They’re both baskets of many individual stocks, bonds, and other securities that help spread out your investments in the stock market. Instead of hand-selecting singular assets on your own, you can use either type of fund to instantly get hundreds, thousands, or tens of thousands of different stocks and bonds.
The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions, and it may not achieve its investment objective. ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF's net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost.
ETFs carry additional risks such as not being diversified, possible trading halts, and index tracking errors. All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Dori Zinn is not affiliated with US Wealth Management, LLC and LPL Financial.