ETF vs Mutual Funds: What's the Difference?
The mutual fund works out one value a day; the ETF has a live price all day.
Video coming soon. The lesson video will appear here once it is published on YouTube.
Check yourself: sample questions
Think about each question, pick what you would answer if you like, then select “Show answer” to see the solution and why. Nothing is graded or sent to us. Example numbers are worked examples, not predictions.
1.Which fund type gets one price per day, at the net asset value?
The mutual fund works out one value a day; the ETF has a live price all day.
2.Marge places an ETF order in the morning. At what price is it filled?
Leo's mutual fund order gets the day's one price; Marge's ETF order is filled like a stock order.
3.How is the net asset value of a mutual fund worked out?
The fund adds up what it holds, subtracts its costs, and divides by the number of shares.
Full course: 5 more questions for this lesson
The full course unlocks all self-check questions of all 365 lessons, the daily plan, your progress and the printable learning record. Lessons 1 to 7 are completely free.
See the full course Start the free week
Already bought? Open the course on this device
Sources (4)
- FINRA, Mutual Funds (Investor page: NAV, open-end funds, active vs index, expense ratio, loads, capital gains distributions)
- FINRA, Exchange-Traded Funds and Products (Investor page)
- SEC Office of Investor Education and Advocacy, Investor Bulletin: Characteristics of Mutual Funds and Exchange-Traded Funds (ETFs) (April 2021)
- Eigene Rechnung: Kostenbeispiele Leo
Related lessons
Education only. Not financial advice.