Chapter 22. Comparing ETFs and Mutual Funds
ETFs combine the features of an index mutual fund with the advantages of trading individual stocks, at a very low cost. ETFs are similar to mutual funds, or at least index mutual funds. They represent a sector, style, or a way to invest internationally.[1]
ETFs are being touted as providing three advantages when compared to mutual funds: Tradability, tax efficiency, and lower costs.
Let's consider each of the three.
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