What are Mutual Funds, Index Funds, & ETF’s and How to Evaluate Them

★ SUMMARY ★
If you’re looking to invest your money, such as your investment capital and you want some exposure to the stock market in hopes of your money appreciating but you’re a little more hands off – you might have been looking at mutual funds.

I want to explain the differences between Mutual Funds, Index Funds and ETFs – and how to evaluate them.

Posted at: http://tradersfly.com/2015/04/what-are-mutual-funds-index-funds-etfs-and-how-to-scan-them

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25 COMMENTS

  1. thank you ! this has been really helpful. i was wondering what your recommendation is regarding how much i should start off with. say i want to buy an etf as a beginner. How much should i invest to start then what should my monthly contributions be ?

  2. I'm a civil servant and have a 457b. I make 24 contributions to my plan a year. If one of my elections is a Vangaurd Index fund, and during one quarter it goes down in price, does that mean that I automatically purchase more Index Units for the same amount of my monthly contribution? Will this also be the same with Wells Fargo Bonds?

  3. The difference between ETFs and Mutual Funds is not just the fees. The mutual funds perform worse than index trackers / ETFs do that track the same market. Actively chosen investments within a fund almost always (97%) underperform compared to an investment that tracks the market as whole

    Summary:
    If you like expensive investments that underperform vs the market as a whole, buy mutual funds !!!

  4. Look, I think if the mutual funds don’t care about their clients money they are not gonna survive. In fact, if they can help the clients grow their assets, they will be able to charge more on the management fee. The mutual funds interest is align with clients interest, in my opinion.

  5. He brushes off professional insight which makes money. He is paid by ETF companies to do this. When the market go through a major shake or crisis ETFs will be blamed. Professionals make money any ways and the fees are nothing relative to profit and time.

    Very misleading !!

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