ETFs and Mutual Funds are considered better investments compared to stocks because these are less risky assets (as you will be investing through an investment pool and experts will be handling your investment, which relieves you from choosing assets to invest). Between ETFs and Mutual Funds, which do you think is less risky and more profitable? I do not have any investment in ETFs but I have some investment in Mutual Funds.
ETFs Vs. Mutual Funds
- Thread starter nomad
- Start date
Mutual fund and ETF have minor differences which is highly negligible. Most times, investors use the word intermittently. The only difference between mutual fund and ETFs is that ETFs can be sold as a stock. On the other hand mutual fund is only sold at the end of the trade on daily basis.
ETFs and mutual funds, similar to both, collect funds from the public/investors. Mutual funds are managed and traded by investment managers, while ETFs are managed by participating dealers in the primary and secondary markets. Risk will always be directly proportional to profit. So there is no low risk, big profit. I think ETFs are more challenging and speculative, whereas mutual funds would suit the conservative crowd better.
