What is the difference between a mutual fund and an ETF?

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I would really appreciate if you answer the question with an easy to understand example

In: Economics

5 Answers

Anonymous 0 Comments

One isn’t publicly traded (MF) while the other is (ETF).

Some are both : a MF you can trade through an ETF. This is something Vanguard does a lot.

Example :

* VFIAX is the Mutal Fund
* VOO is the ETF

Both are the same exact fund. The only difference between them is the way you invest in the fund.

tl;dr: An ETF is a fund that emits shares you can publicly trade to invest in the fund, instead of investing directly in the fund with a subscription.

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