Posts Tagged ‘Index Funds’

Exchange Traded Funds










An exchange traded fund (ETF) is essentially an index fund that trades like a stock  and is listed on the exchange.

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Disadvantages of investing in a Mutual Fund are:

Mutual funds have their drawbacks and may not be for everyone:

No Guarantees: No investment is risk free. If the entire stock market declines in value, the value of mutual fund shares will go down as well, no matter how balanced the portfolio.

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Advantages of Mutual Funds

The advantages of investing in a Mutual Fund are:

Diversification: The best mutual funds design their portfolios so individual investments will react differently to the same economic conditions.

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