ETFs vs. Mutual Funds
Mutual Funds |
ETFs |
|
Pricing |
end-of-the-day pricing |
real-time intra-day pricing |
Trading features (short, limit orders, margin) |
No |
Yes |
MER |
high (2-3%) |
low (0.18 - 0.6%) |
Capital gain exposure |
Yes |
No |
Management style |
mostly is active |
Passive |
Commission |
no brokerage fee, but front\back load may apply |
pay brokerage commission |
Dollar cost averaging |
work for mutual fund |
not work for ETF due to brokerage commission |
Dividend reinvestment |
work for mutual fund |
not work for ETF due to brokerage commission |