ETFs vs. Mutual Funds

The real differences between ETFs and traditional mutual funds: how they trade, what they cost, how taxes work and how to decide which fits you.

Two wrappers, similar insides

ETFs and mutual funds are both pooled funds. Many hold exactly the same kinds of investments, and some fund companies offer the same index strategy in both forms. The differences are mostly about the wrapper: how you buy and sell, what it costs and how taxes work.

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