Today's DueNorth Insight - Mutual Funds vs. ETFs

August 20, 2021

Hello everyone, I hope you’re all doing well! On today’s DueNorth Insight – I’m going to talk about Mutual Funds verses Exchange Traded Funds which are also known as ETFs.

What are they? And why would we want to invest in them?

For starters, they bundle different securities into one fund and those funds can have different investment objectives. So we have Large Cap Value and Large Cap Growth Funds, those focus on large companies, and then we go down to mid and small sized companies and then there’s also international, global and bond funds.

And then if we want to look at specific sectors and areas of the market there’s also funds that focus on science and technology and real estate. Each of these funds is managed by a portfolio manager who track the investments and they manage all of the trading of the stocks and bonds within those funds.

By having a mixed portfolio of different objectives, gives you a lot of diversification in your portfolio so that you have a broad asset allocation. One of the key differences between mutual funds and ETFs is that Mutual Funds trade at NAV which stands for Net Asset Value and they have a closing price at the end of the day. ETFs trade intra-day and their price fluctuates throughout the day and so they trade very much like a stock.

If you have any questions regarding Mutual Funds or ETFs please give us a call at Priebe Wealth, we’re happy to help answer questions. And that wraps up today’s DueNorth Insight, thank you!

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.