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Glenda Moehlenpah, CPA, CFP®
Financial Bridges
13319 Poway Road, #506
Poway, CA 92064
Phone: 858-486-0100
Email: glenda@financialbridges.com
Website: www.FinancialBridges.com
Buying shares of mutual funds* generally gives investors a way to own a piece of many securities, offering some diversification** most people could not afford if they were to buy the same securities individually. Two popular investments that aim to achieve this diversity at a reasonable price are index-based mutual funds and exchange-traded funds (ETFs). While they have some similarities, there are some important differences.
Both types of pooled investment vehicles generally have lower fees than non-indexed mutual funds, but charge a small fee known as the expense ratio. ETFs that mimic the major indexes may have lower fees than index funds.
Investment minimums also may vary between the two. Use caution, however, as some ETFs may trigger trading commissions.
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