A. There are pros and cons associated with ETFs and Mutual Funds. Below we will discuss the key advantages of one category over another:
Advantages of ETFs over Mutual Funds
1. Tax-efficient
ETFs often are more tax-efficient, giving investors more control over when to book gains or losses.
2. Transparency
Because ETF portfolios are readily available online or in fund literature, investors can easily tell what they own.
Advantages of Mutual Funds over ETFs
1. Research capability
Active fund managers usually are supported by analysts who follow individual stocks and market sectors, something that individual investors may find hard to do.
2. Skills of fund manager
Also, a skilled manager could try to enhance returns by taking advantage of attractively priced stocks, especially when the market is falling.