ETFs are built on a backbone of transparency, while mutual funds are opaque in nature. And although mutual funds trade at NAV, it doesn’t mean the execution cost is free. Bryan Moore explains.

I have been talking to ETF investors for more than a decade, and when I mention the numerous benefits of the structure, I often hear “I don’t need intraday liquidity, so that does not benefit me.” Well, I am here to tell you that whether or not you utilize intraday liquidity, it benefits all ETF investors.

Exchange-traded funds (ETFs) have seen immense growth over the past decade. While there are a multitude of benefits of ETFs for investors, we continue to see questions around ETF trading. Let’s discuss the do’s and the don’ts of how to best trade an ETF

ETFs have many benefits that have caused them to expand in terms of assets and offerings over the past decade. Not only are they typically low cost and extremely transparent, a key characteristic and an attractive feature is their tax efficiency.

One of the most common questions and discussion points we encounter is this: “What are the key differences between ETFs and mutual funds?” Both are investment vehicles designed to give the investor exposure to a basket of securities, but there are important distinctions between the two structures in terms of transparency, trading and tax efficiency.