Tom Meaglia photo

Tom Meaglia, ChFC®

Chartered Financial Consultant


Investment Advisor Representative

CA Insurance Lic. #0567507

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

Toll Free: 800-386-3700

Bus: 909-593-6105

Cell: 818-681-8600

Fax: 909-593-6120



May/June 2020

Bigger Baskets

Bigger Baskets

Buying shares of mutual funds* generally gives investors a way to own a piece of many securities, offering some diversification** most people could not afford if they were to buy the same securities individually. Two popular investments that aim to achieve this diversity at a reasonable price are index-based mutual funds and exchange-traded funds (ETFs). While they have some similarities, there are some important differences.

Index-based mutual funds and ETFs are passive investments. They both seek to track underlying securities’ indexes and replicate their respective returns, generally with lower fees than actively managed funds.

Both types of pooled investment vehicles generally have lower fees than non-indexed mutual funds, but charge a small fee known as the expense ratio. ETFs that mimic the major indexes may have lower fees than index funds.

ETFs are not mutual funds but investments registered with the Securities and Exchange (SEC) commission. While index fund shares can only be bought or sold at the end of each trading day, ETF shares are traded throughout the day. This means index fund prices change only after trading hours. ETF prices change more frequently and, because they are traded throughout the day, they are potentially more liquid. Investment minimums also may vary between the two. Use caution, however, as some ETFs may trigger trading commissions.

Get Help
While these descriptions are generalized, some ETFs can be very specialized with a small niche focus and higher fees, making them more difficult to trade and more expensive. Talk to a financial professional to learn more.

*Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. Contact the issuing firm to obtain a prospectus which should be read carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.

**Diversification cannot eliminate the risk of investment losses. Past performance won’t guarantee future results. An investment in stocks or mutual funds can result in a loss of principal.


Enter your Name and Email address to get
the newsletter delivered to your inbox every month.


Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Investment advisory services offered through Fusion Capital Management, an SEC Registered Investment Advisor. 9111 Cypress Waters Blvd., Ste 140, Dallas, TX 75019.
Meaglia Financial Consulting and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.