Mutual Funds

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What are Exchange Traded Funds (ETFs)?

Exchange traded funds are similar to index funds, in that they track specific indexes, but they trade on the stock exchanges like individual securities. Mutual funds are priced once a day, at the end of trading. ETFs are traded throughout the day, so their share prices vary throughout the day. ETFs invest in almost anything that mutual funds invest in: companies of all sizes, real estate stocks, international stocks and bonds, government and municipal bonds, sectors, gold, utilities, currencies, and so forth. Like index funds, ETFs have low expense ratios. However, ETFs are purchased through brokers, so you have to pay commissions.