Ask The Financial Expert: Index Funds? ETFs? Which One Is Best For You?

Tony De Thomas is, President of De Thomas Wealth Management, tells us more.

Q. Why are INDEX FUNDS and ETFs worth knowing about?

A.Things change, and it’s important that investors keep up with those changes and are at the curve of what’s happening. INDEX FUNDS and ETFs are both new, revolutionary products taking the world by storm but it’s important to realize the difference between the two, and understand which is best for you.

Q. In today’s market, the BIG question is INDEX FUNDS or ETFs?

A. Index mutual funds and ETFs (exchange traded funds) are similar but a few small differences can mean a lot to investors.

  • ETFs trade like stocks – Investors can buy + sell shares on the open market
  • ETFs require investors to buy an ‘even lot’
  • ETFs don’t usually o er a dividend re-investment service
  • Buy and Hold long-term investors prefer Index Funds
  • Index mutual funds don’t require a commission to buy or sell
  • Index mutual funds allow shareholders to re-invest their dividends automatically, commission free
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    While ETFs and Index Funds are marvellous products, your most important decision is your asset allocation. At De Thomas Wealth Management, we can tailor your investment objectives and goals to suit your needs. Personalized service with experienced advisors. For independent advice on ETFs, indexing and investment planning, please give us a call or an email. We have been providing independent financial advice since 1987.

    9033 Leslie St., #1, Richmond Hill, Ont. | 905.731.9800
    [email protected]

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