Exchange-Traded Funds
An exchange-traded fund, or ETF, resembles a mutual fund but trades on an exchange like a stock. Although expenses for ETFs are generally lower than for actively managed mutual funds, long-term investors must weigh the consequences of the trading costs every time they buy or sell shares of an ETF. In contrast, most mutual funds do not charge transaction costs if you buy them directly from a broker or from the fund company that runs them.
