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Lisa is considering whether she should invest some extra money in a mutual fund or an ETF....

Question:

Lisa is considering whether she should invest some extra money in a mutual fund or an ETF. Explain the key factors that should influence her decision.

Exchange traded funds:

They are investment funds just like a mutual fund consisting of stocks, commodities or bonds which tracks indexes. Their prices are determined by investors' opinion and though it changes price throughout the day, the value is close to the NAV most of the time.

Answer and Explanation: 1

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Mutual funds are a collection of capital pooled by different investors used to buy shares, stocks, and bonds and are actively managed by fund...

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Investment Opportunities in Mutual Funds and Exchange-Traded Funds

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Chapter 25 / Lesson 17
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Two types of investment opportunities are mutual funds and exchange-traded funds (ETFs). Learn from an overview of both types of opportunity and consider the advantages and disadvantages of each.


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