Are ETFS a good investment?

ETFs are like mutual funds that trade throughout the day but are more tax-efficient, transparent, and accessible. And they are often cheaper than their mutual fund forebears. But these advantages don’t apply to every ETF. Some purported benefits of ETFs are oversold, while others are underrated.

What is the difference between ETFs and mutual funds?

The differences between ETFs and mutual funds can have significant implications for investors. One big difference to consider is how shares of the funds are priced. Since ETFs are bought and sold on a stock exchange, market forces dictate the value of the fund itself.

Should you buy an ETF or a mutual fund?

ETFs carry advantages over mutual funds. Some, like lower tax bills and fees, can make a big difference for investors; others won’t be noticeable. But they rely on disciplined investing to work, as Jack Bogle believed. Investors should consider their own behavior before deciding whether to buy an ETF or a mutual fund.