Seasoned retirement and financial strategist Mark Kinney, of Toole, Kinney & Co., Inc. discusses the advantages of investing in ETFs as opposed to mutual funds.
Lee, Massachusetts—August 2, 2016—Founding partner of Toole, Kinney & Company, Inc., Mark Kinney, CFP®, posted a new blog entry entitled, “ETFs and Mutual Funds: What’s the Difference?” In the post, he lays out the main differences between mutual funds and ETFs.
Kinney writes, “In general, ETFs are also known for lower costs. While mutual funds are actively managed by a fund manager or investment team, ETFs are often passively managed and calibrated to track a certain market index in order to match the returns and price movements of a certain index, like the S&P 500, for example. This work can usually be accomplished through a computing program, therefore, lowering the costs of operations for the fund.
ETF shares are also bought and sold by individual investors, and not by a fund manager, which also contributes to a lower cost for the ETF investor. Moreover, many of the operational fees associated with buying and selling in a mutual fund don’t apply to ETFs. On average, ETFs holders end up spending less in over-head fees and trading costs.”
The entire article can be found HERE. http://www.toolekinney.com/etfs-and-mutual-funds-whats-the-difference/
About Mark Kinney
Mark D. Kinney, CFP®, has been advising clients for close to 30 years on how to maximize their retirement income in a sustainable, repeatable, and verifiable manner, while minimizing risk exposure to the daily turbulent financial markets. His keen insights into conservative and income generating investment options have been invaluable to those approaching or currently in retirement. In addition to his decades of experience and financial know-how, he’s held Series 7 and 63 FINRA Securities registrations for over 25 years, holds several insurance licenses, and has held the Certified Financial Planner ™ (CFP®) designation in good standing for 20 years.
After successful careers with a number of reputable financial institutions, Kinney established Toole, Kinney, & Co., Inc., in 1999. Kinney has been cited on such national news outlets and financial publications as CNN.com, Fox Business, NBC, Wall Street Select, and The Miami Herald. He remains active in several area charities, has participated in several marathons, including the Boston Marathon in 2013 and 2014, enjoys all activities outdoors, and currently lives in Stockbridge, Massachusetts.