Reply To: Best use 250,000

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#137608
Zigzagger
Participant

ETFs (Exchange Traded Funds), and to make decision making more complicated, CEFs (Closed End Funds) are both types of index funds. The differences are in how they are managed, their fees, how strictly they follow their index, how they are priced, for example, CEFs can sell at a discount to their net asset value or at a premium to it, and how you buy them. For example, ETFs and CEFs are bought like you buy any stock. They are traded at whatever their price is at the moment you place a buy or sell order, whereas, you have to wait for the end of the day for a buy or sell order to be exercised on an index mutual fund, which is bought thru a mutual fund company. I encourage you to consider CEFs because some sell at greater than 5% discounts and pay good dividends. That is like buying $1.00 worth of goods for $0.95 or less. You should do your due diligence on these and in that regard I recomend http://www.cefconnect.com.
Good Luck