Mutual Funds and ETFs

If you’re retired, you may be wondering if mutual funds and ETFs are appropriate for you to invest in retirement. You may also wonder what the difference is between them (hint: there are more similarities than there are differences).

Mutual funds are actively managed by fund managers who make decisions about which assets to buy and sell within the fund. Investors buy shares directly from the fund company at the end-of-day net asset value.

ETFs are passively managed funds that typically track an index or a specific sector. They are traded on exchanges like stocks, and their prices fluctuate throughout the trading day. Investors buy and sell ETF shares on the open market.

In today’s podcast, we give a bird’s eye view of how mutual funds and ETFs work, along with the main advantages of each.

As usual, we’ll end the show by answering a few of your questions. Listen in.