224: ETF’s vs. Mutual Funds

Be Wealthy Podcast CoverLearn about ETFs and mutual funds

Listener question – Are ETFs or mutual funds better?

What they are:

ETF’s:

Fixed basket
Trades like a stock, continuously priced throughout the day
Transparency
Low fees
Broad index or sector
Long or short

Mutual funds:

Funds pooled together
Professionally managed
Priced at the end of the day
Decisions made for you
Only know what stocks are in it quarterly
Don’t need a brokerage account, can go direct to the fund
Higher fees
Can cause unwanted capital gains
Manager is paid to beat the indexes, but they don’t always accomplish it.
Can invest regular deductions from your bank account ie. $25/mo.

Question is which one will provide better performance?

Use ETF’s for indexes.
Use mutual funds for good manager’s track record.

Asset allocation model – core + satellite, creating a combination portfolio

Financial freedom can be yours…

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About Linda

Host of the “Be Wealthy & Smart” podcast on iTunes. Linda received a bronze 2014 Stevie® as “Maverick of the Year” for financial education by the American Business Awards. A millionaire at age 38 and widowed at age 45, Linda uses her vast financial experience and knowledge to empower women and men worldwide to financial freedom. She is the only financial expert who teaches to start with a wealthy mindset before learning the twin pillars of wealth building: investing like billionaires and creating a luxury brand business.

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