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RE: LeoThread 2025-07-01 12:43

in LeoFinance3 months ago

Part 3/8:

  • Mutual funds pool investors’ money into a managed portfolio, only tradable at the close of the day and priced based on net asset value.

  • ETFs, traded like stocks, allow for more flexibility as they can be bought and sold throughout the trading day, with values adjusting in real-time.

Todd emphasizes that index funds typically come at a lower cost, particularly since many aim simply to replicate the performance of established indices like the S&P 500, which represents a broad swath of the U.S. stock market.

Historical Context: The Vanguard Revolution