Both mutual funds and ETFs have their own advantages. But maybe it’s time to rethink your investment portfolio and decide if it is serving as needed?
If a mutual fund has a high expense ratio or is spending too much money on taxes due to unwanted allocation of capital gains, switching to an exchange-traded fund is an excellent choice.
Reallocating investments from an indexed mutual fund to an ETF can reduce costs. On the other hand, if you prefer an actively managed fund that aims to outperform the market, mutual funds certainly offer more options. Although you should not forget about the exchange-traded funds with high risks and therefore with great rewards.
If you are satisfied with both investment options, then nothing is holding you back against choosing two.
Invest wisely.Editorial – The ESG-zation of the asset management industry
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