Mutual fund trades, by contrast, are executed once a day and all investors get the same price.
Investors pulled more than $900 billion from mutual funds in 2022 and funneled about $600 billion into ETFs, according to Morningstar.
There were 419 U.S. ETF fund inceptions in 2022, versus 197 mutual funds, Morningstar found.
3 big reasons ETFs have gotten popularThere are three big reasons investors, in aggregate, have preferred ETFs over mutual funds, experts said.
When asset managers buy and sell securities within mutual funds, those trades may trigger capital gains taxes for fund investors.
Persons:
Kathrin Ziegler, Morningstar, Bryan Armour, Armour, Rosenbluth
Organizations:
Digitalvision, Getty, Mutual, North America, Morningstar, of Iowa
Locations:
U.S