How do I compare Exchange Traded Funds and mutual funds?
Because the two types of investment are quite different in many ways, investors need to see proven performance by both. Regardless of the type of investment, you need to see actual returns to unit holders, and increases in portfolio values, as basic benchmarks. Comparison will show, rapidly, the facts of performance. Any historical data will indicate actual returns paid to investors. In many cases funds are required to indicate their distributions to fund members, reinvestment of units, etc. This information really is the bottom line, in terms of delivery to investors. Having identified the returns, you also need current information, preferably in the form of market analysis, current issues affecting funds, and other relevant data. This information also provides valuable insights into how funds are performing, and why they’re performing the way they are. You will note that the mutuals and the EFTs don’t perform in the same way, except when dealing in the same indices, and even then the
