05-18-2024, 03:17 PM
ETFs (Exchange-Traded Funds) trade like stocks on exchanges, offering flexibility and lower fees. For instance, SPDR S&P 500 ETF (SPY) tracks the S&P 500 index. Mutual funds are bought directly from the fund company at day's end price, with higher fees and minimum investments. An example is Vanguard 500 Index Fund (VFIAX), also tracking the S&P 500 but with active management options.