ETFs vs Mutual Funds

The table below summarizes the key structure of Actively managed ETFs vs traditional ETFs and mutual funds.

Feature Active ETF Index ETF Mutual Fund
Marginable YES YES NO
Shortable YES YES NO
Tax Efficient* YES YES MAYBE
Trades Intraday YES YES NO
Active Professional Management YES NO MAYBE
Passive Management NO YES MAYBE

*ETFs are, however, subject to commission costs each time you buy or sell.

 

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