ETF Investing or Traditional Index Funds?

ETF Investing or Traditional Index Funds?

ETF investing, also referred to as Exchange Trade Funds investing, are a type of investment that allows greater diversity with fewer limitations. Similar to stocks, an ETF investment can be traded mid-day. Representing groups from a common area in the market including currency, gold, oil, financial services, and geographic region, and ETF investment can be either traded or hedged using specific options unlike a mutual fund. While an ETF is linked to the index, it is important for beginner investors to understand that it is different with an ITS, or Index Tracking Stock. While ETFs have a number of qualities that make them attractive over other investment vehicles in this uncertain market, they are extremely popular in competition with the mutual fund as most outperform the mutual fund even without fees.

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