Review: ETF vs MUTUAL FUNDS
Rating: 5 out of 5
Date: 05 17, 2014
An ETF is basically a mutual fund that trades like a stock.  Like an index fund, an ETF represents a group of stocks that reflect an index such as the S&P 500.  However, an ETF isn't a mutual fund; it trades just like any other company on a stock exchange. Mutual funds have a net asset value (NAV) that is calculated at the end of each trading day while an ETF's price changes throughout the day, fluctuating with supply and demand.  ETF trading gives investors the diversification of an index fund plus the flexibility of a stock.  In addition, ETF brokers generally charge lower commissions but there are fees associated with buying and selling.  If you want to make a large investment ETF’s are a great way to go.  Alan Williams does an excellent job discussing the features & benefits of ETF investing, clearly illustrating why it has become increasingly popular with traders.  I highly recommend reading this book.