Question
Why ETFs are better than mutual funds?
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16th Nov 2009 by David Becker
Exchange Traded Funds (ETF) offer a mutual fund type of product, that allows the investor the flexibility of exiting or entering the market during the trading day. With most mutual funds, an investor need to request a purchase prior to the close of the market. The fill price of non ETF funds will be the closing price of the mutual fund on the day the request to enter is made. The same is true for exiting a mutual fund. The exit price will be the closing price on the day the exit request is transacted. ETFs give investors the flexibility to enter and exit multiple times during the course of a trading day. ETFs are a more flexible instrument specifically with regard to entry and exit of positions.
Exchange Traded Funds (ETF) offer a mutual fund type of product, that allows the investor the flexibility of exiting or entering the market during the trading day. With most mutual funds, an investor need to request a purchase prior to the close of the market. The fill price of non ETF funds will be the closing price of the mutual fund on the day the request to enter is made. The same is true for exiting a mutual fund. The exit price will be the closing price on the day the exit request is transacted. ETFs give investors the flexibility to enter and exit multiple times during the course of a trading day. ETFs are a more flexible instrument specifically with regard to entry and exit of positions.
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3rd Nov 2009 In Exchange Traded Funds
1 Answers | 130 Views
Subjects: etfs,
mutual funds,