ETF Investing Services
As you start reading about ETF investing services you are probably going to get a headache. Trying to decide if it is better to invest in a typical mutual fund or an ETF (Exchange Traded Fund) can be one of those mind numbing experiences.
I personally think for the "Average Joe Investor" out there too many websites make it to complicated by talking about expense differences between mutual funds and ETFs.
So to keep it simple, both methods offer you the ability to diversify your investments instantly as opposed to investing in any one particular stock. Mutual funds allow you to be a little more hands off than ETFs. However, ETFs offer you more flexibility from day to day.
ETFs are simply a group of stocks, similar to a mutual fund or index fund that are traded on the stock exchanges just like a typical stock. Mutual funds and index funds, on the other hand, use end of day pricing, but this is a minor difference. A simple investor who is interested in mutual funds or ETFs is not typically going to be looking to trade in and out of either one of these investments quickly.
So do not let all the arguing about mutual funds and ETFs give you a headache. The biggest obstacle for a beginner may simply be the initial cost. Most quality mutual funds and index funds require a minimum $3,000.00 initial deposit where as a typical ETF does not. So take your time and look at the cost of both and make your own choices.