I've done the research and am still a bit confused. What

ETFs can be traded like a stock, and its only composed of stocks. Mutul funds are just pools of different investments, that are made by some investment bank.

ETFs usually have lower expense ratios than funds.

>>1225193
>ETFs can be traded like a stock, and its only composed of stocks.

No go fuck yourself. Never answer any other questions on this board until you're a little less stupid

>>1225511
Nice rebuttal, faggot.

http://www.investopedia.com/articles/exchangetradedfunds/08/etf-mutual-fund-difference.asp

>>1225193
>ETFs can be traded like a stock, and its only composed of stocks.

Sometimes you go onto /biz/ and there is one person that might sound like they know what they are talking about, but they don't. This is a good example of one of those times.

An ETF you buy in increments of shares. The good thing means that if an ETF costs $100/share, you can get started investing with as little as $100. Vanguard's mutual funds typically have a required min of $3,000 to participate in a fund.

The bad thing is that you HAVE to buy in share increments. If you have $270 you want to invest, and the ETF costs $100/share, you can buy 2 shares and have $70 left over. There's no way to invest that $70.

On the other hand, if you have already put in $3000 to a certain mutual fund, and you have $270 you want to invest, you can just buy $270 more. Then you'll have $3270 in that fund - you weren't held to specific increments.

ETFs have to be purchased while the stock market is open... 9:30-4 on weekdays. If you're an adult with a job, you might find this annoying.

Orders for mutual funds can be put in at any time, but they only execute at the end of the next day when the prices for the fund are updated. This is more handy, but it's slower, and you lose the ability to time exactly when during the day you want to buy (not that this really matters for long term investing).

ETFs are usually more tax efficient than MFs for some reason I don't understand. Also, I think Vanguard has some sort of patented magic that makes their MFs just as tax advantaged as the ETFs.

All in all, I prefer Mutual funds because I like just being able to put whatever dollar amount I want in. VTSAX 4 lyfe

>>1225725
>but they only execute at the end of the same day if placed before the close of markets
FTFY

>>1225728
>ETFs are usually more tax efficient than MFs
Depends on the ETF and the MF. An indexed investment is going to be more tax efficient than an active investment, but not all mutual funds are actively managed.

ETF's are more YOLO