Quote:
Originally Posted by ltcdfancher
From my limited experience, a mutual fund and an ETF that both claim to track the same index will hold very similar if not the identical basket of equities in about the same percentages. The biggest difference between the two is how they are bought and sold. A mutual fund buy or sell order executes AFTER the market closes while a buy or sell order of an ETF executes as the open market allows. Stop loss and limit orders “work” on an ETF, for example.
Again, I am not an expert in this topic and I don’t even play one on television.
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I think you are correct, but none of those differences should be of concern to the average investor. I still invest in mutual funds, not ETFs.