I would really appreciate if you answer the question with an easy to understand example
In: Economics
A mutual fund has a person that picks the portfolio. An ETF is a computer algorithm.
Because they are “actively managed” a mutual fund can change to more suit the goals of the investers but this comes with higher fees. Date targeted retirement funds are a good example.
ETFs on the other hand will always just do what the algorithm is programmed to do, but the fees are lower.
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