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What are the main differences between mutual funds and exchange traded funds? What are the pros and cons of each type of fund?
Hi there,
Conventional mutual funds are actively managed by fund managers who decide what investment decisions to make. Exchange traded funds (ETFs) are passively managed and simply follow standard market indexes.
Because ETFs require little hands-on involvement, their total expense ratio (TER) is typically lower than that of conventional mutual funds.
Best regards from Moneyguru
More on this topic:
Passively Managed Funds vs. Actively Managed Funds
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