How Exchange Traded Funds Work Part I – -411
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Exchange traded funds are index funds which have advantages over open-end index mutual funds. ETFs trade all day long on the stock exchanges, may be purchased through any broker, have lower fund expenses than mutual funds, and have less likelihood of generating unwanted taxable gains than mutual funds.
There are a number of reasons, which we’ll discuss, for investing in index funds (Exchange Traded Funds or mutual funds) but let’s sta (more…)