Mutual Funds and ETFs

This video covers the following learning objectives:

• Explain the structure and purpose of mutual funds and ETFs

  • Understand how these pooled investment vehicles work

  • Identify the benefits of diversification and professional management

• Differentiate between mutual funds and ETFs

  • Compare trading mechanisms (daily pricing vs. intraday trading)

  • Recognize differences in pricing (NAV vs. market price)

• Interpret key performance and cost metrics

  • Define and calculate MER (Management Expense Ratio)

  • Understand NAV (Net Asset Value) and its role in fund valuation

• Identify different types of funds and their investment focus

  • Distinguish among equity, fixed-income, balanced, index, and specialty funds

  • Understand how each aligns with different investor needs

• Evaluate fund suitability for various investor profiles

  • Match fund types to investor objectives, time horizons, and risk tolerances

  • Apply suitability principles to personal and client investment decisions

• Compare cost structures and tax implications

  • Understand why ETFs typically offer lower MERs than mutual funds

  • Recognize cost as a component of net return