In this Finance Moment, Associate Financial Planner Lance Knaack explains how mutual funds and exchange-traded funds (ETFs) are similar, how they are different, and how they both have a place in the market, including in Syverson Strege’s portfolio investments.
Lance gives a full definition of both mutual funds and exchange-traded funds and explains the major differences between the two. He explains that one of the major differences is how they are bought and sold. Lance also notes that mutual funds began in the 1920s and ETFs came on the investment scene in the 1990s. He provides insights on why ETFs are gaining popularity over mutual funds and why they are more tax efficient.
Finance Moment…Syverson Strege’s mini-podcasts to provide rapid-fire information on financial topics of the day.