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Because there is no fund manager. Usually ETFs follow a fixed manadate - e.g. the largest 50 financial stocks in the US whereas a mutual fund will have a fund manager to make decisions every day and he needs to get paid - so there is a fee.
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What assets did mutual funds have in 1945?
By 1945 mutual funds held more than $1 billion
What were mutual funds' assets in 1992?
All mutual funds combined contained more than $1.6 trillion in assets in 1992
What assets did mutual funds own during the 1990?
In 1990 mutual funds held more than $1 trillion in assets
Are index funds better than mutual funds?
Index funds have the potential to be more profitable than mutual funds. Unlike mutual funds, the contents of an index fund are more easily known. The individual stocks that make up an index fund are easier to keep track of. It is easier to track the fund gains and losses. Hence the index.
What is difference between stock and mutual funds?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
What is the difference between stocks and mutual funds?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
How much did U.S. open-end mutual funds control in 1993?
U.S. open-end mutual funds controlled more than $1.7 trillion in assets by 1993
What are Canadian Mutual Funds and how is their performance?
Canadian Mutual Funds is known to offer more stability than individual stocks. This fact alone is a good indicator as to where you should invest your money.
Learn The Difference Between ETFs And Mutual Funds?
Rapidly gaining popularity among investors worldwide, exchange-traded funds are now a real alternative to the more traditional mutual funds trading. Both have advantages and disadvantages, both carry a serious risk for the investor, and both types of investments have several categories that need to be explored. Basically, mutual funds are simple and revolve around a certain stock option. ETFs are like complete portfolios that reflect the performance of an entire market index.Two Types Of Mutual FundsClosed-end mutual funds do not have an increasing number of shares available as demand grows. The prices are driven solely by the investor demand, not by the fund's net asset value.Open-end mutual funds involve a direct purchase between the funding company and investors. The fund can issue as many shares as it wishes, and there is a daily valuation process regulated by the federal government. This daily procedure changes the share price according to the calculated value of the portfolio. This value is unaffected by the number of shares.Three Types Of ETFsA unit investment trust is governed by the Investment Company Act of 1940 and attempts to mimic or replicate a specific market index. A UIT pays cash dividends on a quarterly basis.An ETF open-end index involves reinvesting of dividends on the actual date of receipt. The law allows for securities lending, and cash dividends are paid quarterly.An ETF grantor trust is similar to a closed-end fund, but in this case the investor actually owns shares in the companies that the ETF is invested in. The investor also has voting rights as a shareholder. Dividends are not subject to reinvestment but instead are paid directly to shareholders.Some Advantages Of ETFsBecause they are considered managed portfolios that are not involved in volatile daily price changes, ETFs usually have lower capital gains than mutual funds. Shareholders pay the tax on the turnover within a specific fund.Stocks that are traded at a thin level are considered to be illiquid and are subject to higher spreads. This results in a price premium. ETFs are generally immune to this problem because the liquidity of this stock is not directly related to the daily trading volume. Instead, ETFs and their liquidity is parallel to the liquidity of the stocks within the market index. The primary concern for investors wanting to get involved with ETFs is the possibility that the fund itself will go out of business due to enormous losses. An unplanned liquidation of funds is to be avoided when trading ETFs.
Construction of portfolio for collective investment?
A Collective Investment is more, really, a "vehicle" than a portfolio -- so in short you could construct a portfolio in a myriad of ways -- Think of it this way, you may be familiar with mutual funds. Mutual funds invest in all kinds of things with all sorts of different portfolio construction strategies and methods. There are money market mutual funds and stock funds and other conservative to aggressive funds. A mutual fund is one way of setting up, legally, the form of the investment portfolio, not the strategy of the portfolio. This is also the case with Collective Investment (Funds), which are legally organized in a different manner than mutual funds or partnerships. hope that helps
How do mutual funds work?
Mutual Funds work to invest in a type such as stock or bonds or sector with much less risk than investing in individual securities. Sources: http://www.amfi.com http://www.morningstar.com/
What is the difference between funds and fund?
The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.
