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FINRA Highlights Differences between ETFs and Mutual Funds

FINRA provided guidance on the fundamental differences between exchange-traded funds ("ETFs") and mutual funds. The SEC's review focused on the different manners in which the products are purchased and sold, how the products are priced, and the expenses involved in purchasing and holding each product.

FINRA directed investors to a free regulatory tool which allows users to analyze and compare the cost of owning different mutual funds, ETFs, and other funds.

Primary Sources

  1. FINRA Guidance: ETF vs. Mutual Fund – What's the Difference?
  2. FINRA Fund Analyzer Tool

Tags

Regulated Activities
Suitability and Consumer Protection
Sub-Entity
Open-End Funds, ETFs
Regulated Products
Investment Funds (as Regulated Product)
Sub-Product
Public Funds / RICs
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
FINRA / MSRB / SEC Exchanges / SIPC / Accountants
Sub-Author
FINRA