Mutual Fund and ETFs – Performance, Fees, and Portfolio Fit

This video covers the following learning objectives:

Explain how mutual fund and ETF performance is evaluated

• Introduction to performance metrics:

  • Total Return

  • Benchmark Comparison

  • Sharpe Ratio

  • Standard Deviation

  • Alpha & Beta

• Emphasized risk-adjusted performance and manager skill

Describe the fees associated with mutual funds and ETFs

• Outlined major fee types:

  • Management Expense Ratio (MER)

  • Load Fees (front-end/back-end for mutual funds)

  • Trading Commissions (for ETFs)

  • Embedded Fees in actively managed funds

• Illustrated how fees impact long-term returns

Explain how mutual funds and ETFs fit within an investment portfolio

• Introduced core/satellite investment strategy:

  • Core Holdings: Index ETFs and broad-based funds

  • Satellite Holdings: Sector and thematic funds

• Described roles in:

  • Diversification

  • Income generation

  • Retirement planning

  • Risk mitigation