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Last active June 19, 2021 22:45
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Difference between mutual ETFs and index funds
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difference_between_etfs_and_index_funds.md

Difference between Mutual Funds and ETFs

ETFs

ETFs are easier to trade and trade at a higher frequency

  • ETF's are securitized stuff like loans packaged or other debt packaged and sold usually with a rating

    • ETFs are baskets of assets traded like securities

  • ETFs are taxed at a different rate than mutual funds and index funds

  • Mutual funds or index funds are likely to be a little less exciting from the perspective of money making but reliable over the long term

    • Also packaged debt
    • Held onto for longer
    • Company size and capitalization. Index funds that track small, medium-sized or large companies (also known as small-, mid- or large-cap indexes).
      • Building a portfolio around a sector of the market, all stocks in tech sector or something

Questions?

Are they different asset classes of things packaged? Are mutual funds and ETFs taxed differently for incentive for people to hold onto things for longer Are both of these things what causes ETF's and mutual funds to be taxed differently?

How long does it take to get money out of ETF's and is there a way to expedite the process How long does it take to get money out of vanguard REIT

  • Are people fronting the money for people who pull out?
  • Roboadvisors take forever
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