THE WisdomTree BLOG
We have long written about the best practices for switch trades when it comes to buying and selling two ETFs, but what about when switching from mutual funds to ETFs and vice versa?
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.
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.