You don’t need to be a rocket scientist to understand the difference between mutual funds and ETFs
An ETF is a cousin, if not a sibling, of mutual funds and index funds, says Kip Meadows, CEO and founder of Nottingham, a Rocky Mount, North Carolina, fund administration firm. An ETF’s composition a diversified collection of securities is similar to that of a mutual fund.
But this type of fund has a few differences, and some features that may make it especially good for a new investor.
The main difference between these funds and mutual funds is that ETFs trade on an exchange all d…