Mutual Funds vs ETFs - What you NEED to Know!

Описание: What you need to know about ETFs vs Mutual Funds vs Index Funds, and tradeoffs many miss!

#MutualFunds #ETFs

Resources:
SEC Bulletin: https://www.sec.gov/investor/alerts/e...
A Comprehensive Guide to Exchange-Traded Funds (ETFs): https://amzn.to/3EPUUPr

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S&P 500 vs Nasdaq 100:    • S&P 500 vs Nasdaq 100 [VOO vs QQQ]  
Asset Allocation Explained [Modern Portfolio Theory]:    • Asset Allocation Explained [Modern Portfol...  
Three-Fund Portfolio [The BEST Portfolio!]:    • Three-Fund Portfolio [The BEST Portfolio!]  

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-- Outline
00:00 Intro
In this video, we’ll dig into mutual funds, ETFs, and discuss tradeoffs to help determine which is better for you.  We’re going to discuss details and risks that many people overlook.

00:40 What is a Fund?
Mutual funds and ETFs (exchange-traded funds) are similar types of investments. This is great for you as an investor, because you invest in a single mutual fund, or ETF, and get exposure to entire industries, asset classes, or even the entire global stock market in just one fund.  These funds can provide the benefit of broad diversification, economies of scale in trading, professional management, and more.

01:16 Mutual Fund Overview
We look at the evolution of mutual funds and rise of index funds starting in the 1970s. We discuss why index funds are likely better for most people. Then, we discuss what happens when you buy a mutual fund, and their main limitation.

03:58 ETF Overview
We look at the key problem ETFs were intended to address. They were created in the 1990s. Two of the most popular ETFs are SPY and QQQ. ETFs have a more complex creation and redemption process. We discuss how this works and how costs are baked into the transaction. These costs are the bid-ask spread and premium or discount.

10:20 Trade-Offs: Mutual Funds vs ETFs
We look at the trade-offs of mutual funds vs ETFs, including: simplicity, trading limitations, minimum investments, automated trading, tax-efficiency, expense ratios, portability, variety, derivatives, and other risks.

17:22 My Thoughts
I share my thoughts and why I use mutual funds in my portfolio.

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Disclaimer: I am not a financial advisor. My videos are for educational purposes and are my opinions. You should seek advice from a professional advisor or perform your own research. There is no guarantee you will be successful following my opinions.