5 Things That Make ETFs Different From Mutual Funds

Simran

Trading & Pricing: ETFs trade all day on exchanges at real-time prices. Mutual funds transact once daily at NAV.

Costs: ETFs usually have lower expense ratios (0.05%–0.30%). Mutual funds often charge 0.5%–2.0%.

Management Style: ETFs mostly track indexes passively. Mutual funds are often actively managed to beat markets.

Tax Efficiency: ETFs reduce capital gains taxes via in-kind redemptions. Mutual funds may trigger taxable events.

Access & Account: ETFs need a Demat & trading account. Mutual funds require no Demat and allow SIPs.

Read More Stories