The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retired Fools

URL:  http://boards.fool.com/the-major-difference-is-that-the-etf-fluctuates-in-30537360.aspx

Subject:  Re: EFT vs Mutual fund Date:  2/11/2013  10:16 PM
Author:  pauleckler Number:  18217 of 19221

The major difference is that the ETF fluctuates in value throughout the day with market conditions, while the value of the mutual fund is calculated at the close of each business day, usually 4 pm, and all orders placed since the last close are traded at that price.

To the long term investor they are equivalent. To the short term trader, ETF can have advantages.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us