Mutual Funds

Investing Tips

The Difference Between ETFs and Mutual Funds

Exchange-traded funds (ETFs) and mutual funds are alike in that both offer diversification and professional management. Otherwise, the two investment vehicles differ greatly.

Key differences include how these funds are bought and sold, as well as pricing, transaction costs, and much more.

Here's a closer look at the difference between ETFs and mutual funds so you can identify the best investment for your particular goals...

Mutual Funds

The Best Mutual Fund in Tech Owns Zero Shares of Apple or Google

The best mutual fund in tech has managed annual returns of nearly 11% without owning a single share of a big tech darlings.

And yet the performance of the Fidelity Select IT Services Fund (MUTF: FBSOX) makes it the best mutual fund in the tech sector for the past 15 years.

Since March 10, 2000 – the peak of the tech bubble – the fund has posted an average annual return of 10.9%. According to Lipper, that's more than double the second-best mutual fund in the tech sector.

The secret lies in choosing a certain kind of tech stock...