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Masterclass: ETF vs. Mutual Funds

Masterclass: ETF vs. Mutual Funds

In this episode, Matt and Mike discuss all the nitty-gritty details of Exchange Traded Funds (ETFs) and Mutual Funds. What are these funds? How are they similar? How are they different? But most importantly: Which should you choose?

Tune in as we discuss:

  • Why some investors were hit with a big tax bill for holding a mutual fund!
  • Why you should invest in ETFs in your brokerage accounts.
  • What are A, B, and C class shares of mutual funds?
  • What is an index fund?
  • The difference between an active and passive fund.
  • Why are mutual funds and ETFs taxed differently?
  • Can you exchange a mutual fund for an equivalent ETF?

Find out more about Mike at and connect at


Matt: 00:00:00

Welcome to real financial real financial on WK Excel available wherever

Matt: 00:00:04

you get your podcasts I’m podcasts I’m Matt always by Mike Morton of advice

Matt: 00:00:09

and the host advice and the host of financial planning for entrepreneurs

Matt: 00:00:12

and outstanding new cover art of art of Mike Borton sitting on staircase.

Matt: 00:00:18

The lighting is The lighting is such that it looks like the a theorial light of down

Matt: 00:00:23

shining down as you ascend life’s ladder towards some towards some novels financial

Matt: 00:00:28

novel really a It’s really a perfect theme

Mike: 00:00:31

And did just say that whole spiel on one breath?

Mike: 00:00:34

I think you just took one

Matt: 00:00:35

did one I did one breath and that’s, this is how my stream

Matt: 00:00:38

of consciousness works It sounds like I just was cramming for the English portion

Matt: 00:00:43

of my I don’t know I don’t know why my brain just does It just does You’re does.

Matt: 00:00:48

You’re also listening to this probably in the Capitol podcast feed The reason

Matt: 00:00:53

The reason I’m pushing the podcast versions is that today’s show Obviously

Matt: 00:00:58

a lot of Obviously, a lot of folks are XL radio which XL radio which we

Matt: 00:01:01

appreciate today’s but today’s show Mike were to be a little bit more going to

Matt: 00:01:06

be a little bit more of a deep dive.

Matt: 00:01:08

So we want people to check out the podcast you might have one of might

Matt: 00:01:11

have one of to hit that 15 second 15 second rewind something again.

Matt: 00:01:16

you’re not going You’re not You’re not going to spare the

Mike: 00:01:18

No, this is going to be sort of a master class on versus mutual funds.

Mike: 00:01:24

And I wanted to get into a little bit of the nitty gritty

Mike: 00:01:26

between the two so everyone can understand exactly the differences.

Mike: 00:01:30

So there might be, know might a little bit long in terms of the podcast getting

Mike: 00:01:34

a little bit longer, and there’ll be an associated article with this.

Mike: 00:01:38


Mike: 00:01:39

So for those, just really trying to understand the nuances, we’re

Mike: 00:01:42

going to dive into that today.

Matt: 00:01:43


Matt: 00:01:44

And that’s another that’s another on you’re listening on radio, check out

Matt: 00:01:49

the capital closeup podcast feed or financial planning for entrepreneurs,

Matt: 00:01:54

because there’s probably going to be more content than we’re able

Matt: 00:01:57

to get into this on the radio.

Matt: 00:01:59

Okay Enough Okay.

Matt: 00:02:00

Enough filibustering ETFs versus mutual funds What’s an funds.

Matt: 00:02:03


Matt: 00:02:04

an ETF

Mike: 00:02:04

ETF exchange traded fund.

Matt: 00:02:07

you already Yeah you already lost me there is it

Matt: 00:02:09

really it Is it really different

Matt: 00:02:11

than a

Mike: 00:02:11

no they’re exactly the same.

Mike: 00:02:13


Matt: 00:02:13

All right.

Matt: 00:02:14

Well that’s All right Well that’s been financial planning for entrepreneurs.

Matt: 00:02:17

Thank you for today’s show.

Matt: 00:02:18

We know there are differences.

Matt: 00:02:19

There are

Mike: 00:02:20

are differences.

Mike: 00:02:20

Bottom line upfront.

Mike: 00:02:22

All right.

Mike: 00:02:22

So bottom line up front for this episode is ETFs and mutual funds very simple.

Mike: 00:02:29

In many ways.

Mike: 00:02:30


Mike: 00:02:31

But hold ETFs exchange traded funds.

Mike: 00:02:34

It’ll usually have the name in the T in the name of it will say ETF,

Mike: 00:02:38

hold ETFs in your taxable accounts,

Mike: 00:02:42

Your brokerage account, make sure you have ETFs in those accounts and not.

Mike: 00:02:48

Mutual funds.

Mike: 00:02:49

Now there might be nuances to that, that’s just the bottom line upfront

Mike: 00:02:53

is they’re more tax efficient.

Mike: 00:02:54

say you will save more money.

Mike: 00:02:56

There’ll be more money in your pocket.

Mike: 00:02:58

If you use ETFs in your brokerage account, rather than mutual funds,

Matt: 00:03:03

Got it.

Matt: 00:03:04


Matt: 00:03:04

So ETFs in your brokerage got any other account any other types of accounts

Matt: 00:03:08

where you should have ETFs and maybe you can also give maybe you can also

Matt: 00:03:11

give some examples of the types of where you’d prefer to have mutual funds

Mike: 00:03:16

Yeah that’s the big one is just because the tax situation.

Mike: 00:03:20

That’s one of the reasons ETS were created.

Mike: 00:03:22

There’s other we’re going to dive into otherwise I’m not too concerned

Mike: 00:03:26

about it in tax free or tax deferred.

Mike: 00:03:29

These are your 401k is for BS.

Mike: 00:03:31

IRA You could hold either one you’re not paying taxes throughout the year on any

Mike: 00:03:36

growth or dividends or capital gains.

Matt: 00:03:38

me ask you So let that’s actually super clear super clear definition,

Matt: 00:03:43

the bottom line up the bottom line up front is good is this important?

Matt: 00:03:46

why is mean Why is this worth deep dive

Mike: 00:03:49

Yeah So let me tell a story that came out towards the end of

Mike: 00:03:52

last year about Vanguard We have talked a lot about target date funds.

Mike: 00:03:59


Mike: 00:03:59

Target date funds Are those retirement?

Mike: 00:04:01

funds And they hold a mix of stocks and bonds in there.

Mike: 00:04:05

And often these could be a mutual fund or an ETF in this case, the store.

Mike: 00:04:10

It’s about an ETF target date fund, and Vanguard lowered the amount

Mike: 00:04:15

that you had to invest in one of their low-cost target date All From

Mike: 00:04:20

a hundred million down to 5 million.

Mike: 00:04:22

Now these are big numbers.

Mike: 00:04:23

You have to invest a minimum of a hundred million.

Mike: 00:04:25

Who’s investing in that the pension funds and stuff When it

Mike: 00:04:28

got lowered to 5 million, everybody rushed into that lower cost.

Mike: 00:04:33


Mike: 00:04:34

So have a target date fund that all these institutions now with, multi-millions

Mike: 00:04:39

could now get into a lower cost.

Mike: 00:04:42

Of course, they’re going to take advantage that Move out of the one

Mike: 00:04:44

fund with the higher cost into one, with the lower cost, because of

Mike: 00:04:47

all the money, leaving the people.

Mike: 00:04:50

This isn’t a, sorry, this is a mutual fund, not an ETF mutual fund.

Mike: 00:04:55


Mike: 00:04:55

So of all the people leave.

Mike: 00:04:58

Everybody who is left holding that target date fund mutual fund in their brokerage

Mike: 00:05:04

account got hit with capital gains.

Mike: 00:05:09

Now I’ll spare you the details of why this works.

Mike: 00:05:11

We might get it in the episode, but the point is, if you have a mutual fund, if

Mike: 00:05:17

you had this mutual fund in your brokerage account at the end of last year, if had

Mike: 00:05:23

bought it, say a hundred thousand dollars, this target date fund mutual fund.

Mike: 00:05:28

At the end that, you just invested a hundred thousand dollars mat

Mike: 00:05:31

into this target date fund.

Mike: 00:05:31

you’re going to hold it for 20 years.

Mike: 00:05:34

had to pay $3,000 of taxes.

Mike: 00:05:38

Why is that?

Mike: 00:05:38

You just invested a hundred thousand dollars.

Mike: 00:05:41

And at the of the year, you got a statement that says, Hey,

Mike: 00:05:43

you the IRS, your tax forms.

Mike: 00:05:45

When you filed for 2021, you owe $3,000 of taxes.

Matt: 00:05:50

Mike, you’re making me Mike you’re making me nervous someone someone

Matt: 00:05:54

whose name is I don’t call him Matt.

Matt: 00:05:57

No no no no That R no no no no That that’s uh M Robeson may or may or may not

Matt: 00:06:02

have target date funds with Vanguard M

Mike: 00:06:06

Uh yeah You know

Mike: 00:06:08

Don’t worry about it too much

Mike: 00:06:09


Mike: 00:06:09

No, okay.

Mike: 00:06:10

because you don’t have hundreds of thousands of dollars in there.

Mike: 00:06:12

Your 50 bucks you got in it’s not going to be big deal.

Matt: 00:06:16

I’m still not looking I’m looking forward to the tax

Matt: 00:06:18

bill I’m I’m working on my 2021

Mike: 00:06:21

But yeah, let me just say that again.

Mike: 00:06:23

Cause the reason this was a mutual fund in your taxable brokerage account.

Mike: 00:06:28

And just because you made an investment, the people that hold that investment

Mike: 00:06:32

can get hit with tax consequences based nothing That you really did.

Mike: 00:06:39

It’s what other people are doing.

Mike: 00:06:40

All these pension funds ran out, bought something else instead.

Mike: 00:06:45

And so therefore Vanguard had to pass on capital gains people that held that fund.

Mike: 00:06:50

And so you got hit with a capital gains tax, even though all you did

Mike: 00:06:53

was just buy into an investment.

Mike: 00:06:55

You just holding it.

Matt: 00:06:57

is indeed Indeed and I see why we see why we warned be ready to

Matt: 00:07:03

just hit that rewind But I also but I also see what the upshot is here

Matt: 00:07:07

circling just circling back to the top.

Matt: 00:07:09

So what you’re saying is.

Matt: 00:07:11

if I had had been in ETFs rather rather than mutual fund in my taxable brokerage

Matt: 00:07:22

account, I would would not have had that

Mike: 00:07:27

100% You got it.

Mike: 00:07:29

So hold ETFs in your brokerage account.

Mike: 00:07:32

All right.

Mike: 00:07:32

That’s why we that.

Matt: 00:07:34

Got it.

Matt: 00:07:34

Got it.

Matt: 00:07:35

All right.

Matt: 00:07:35

All right.

Matt: 00:07:36


Matt: 00:07:36


Mike: 00:07:36

So I was just gonna say, let’s go ahead and start talking about mutual

Mike: 00:07:39

funds and ETFs and talk about some of the details and then differences.

Matt: 00:07:43

right right right right You want to start Which want to start

Matt: 00:07:45

Which one do

Mike: 00:07:46

yeah, we’ll start with mutual funds.

Mike: 00:07:47

Cause they’ve been around longer.

Mike: 00:07:49

These are an easy way of course, to hold a basket of assets stocks, right?

Mike: 00:07:54

the S and P 500, you want to hold All companies.

Mike: 00:07:57

You buy one mutual.

Mike: 00:08:00

And hold that entire thing.

Mike: 00:08:02

So it’s great.

Mike: 00:08:02

It’s an it’s an easy way of purchasing entire thing.

Mike: 00:08:05

know funds.

Mike: 00:08:06

They’ve been around a long time since 1924, and they’re certainly regulated by

Mike: 00:08:11

the U S all kinds of regulations about how you a a mutual fund, how you to run the

Mike: 00:08:15

mutual fund, all those kinds of things.

Mike: 00:08:17

They typically have a minimum investment a a mutual fund.

Mike: 00:08:21

So maybe $250, $3,000.

Mike: 00:08:26

I told you this other one was an institutional fond.

Mike: 00:08:28

It was, a hundred million dollars was the minimum investment.

Mike: 00:08:31

So they have a minimum investments and mutual funds settle at the end of the

Mike: 00:08:37

day, based on what you want to invest.

Mike: 00:08:39

So if you want invest that thousand dollars, you go ahead and click

Mike: 00:08:42

the button throughout the day.

Mike: 00:08:43

I want to put thousand of cash in this mutual fund.

Mike: 00:08:46

You actually will end up owning that mutual fund at the end of the day.

Mike: 00:08:51

So you don’t get it like right away when you click the button,

Mike: 00:08:54

they settle one time per day.

Mike: 00:08:56

All those buys and sells align at the end of the day.

Mike: 00:09:00

So those are mutual funds.

Matt: 00:09:01


Matt: 00:09:02

All right.

Matt: 00:09:02

Then about what about

Matt: 00:09:04


Mike: 00:09:04


Mike: 00:09:05

So let me stick on mutual

Mike: 00:09:06


Matt: 00:09:06

All right.

Matt: 00:09:07

All right.

Mike: 00:09:07


Matt: 00:09:07

All right.

Matt: 00:09:08


Mike: 00:09:08

Yeah And we’ll to the ETFs.

Mike: 00:09:09

I want to say just a of other things about.

Mike: 00:09:12

Mutual funds, but that’s the high level.

Mike: 00:09:14

There’s a other there’s open-ended funds close ended funds.

Mike: 00:09:19

So you see this open-ended funds are what you typically buy and sell.

Mike: 00:09:23

no limits on the number of shares.

Mike: 00:09:25

So was more people want to buy them the mutual fund company issue more shares.

Mike: 00:09:30

So they’re open-ended.

Mike: 00:09:31

if Matt wants to buy a thousand dollars of a mutual fund and no one’s around to sell,

Mike: 00:09:36

he can still get his money in there.

Mike: 00:09:38

They’ll just issue more shares close in.

Mike: 00:09:40

There’s only a certain number of shares, so so you’ve got to line

Mike: 00:09:44

up buyers and and sellers, so they work little bit differently.

Mike: 00:09:47

Most of the ones out there that you’re going to be investing

Mike: 00:09:49

in are open-ended shares.

Mike: 00:09:50

You can just buy them now there’s different share classes,

Mike: 00:09:54

and this is really important.

Mike: 00:09:56

And unfortunately, you know advisors often push certain share

Mike: 00:10:01

classes it’s better for them.

Mike: 00:10:03

Not necessarily the best for the client because it gets tricky,

Mike: 00:10:07

which share class is best for you.

Mike: 00:10:09

I’ll talk about of them.

Mike: 00:10:10

There’s a, B and C classes of mutual funds share classes.

Mike: 00:10:16

And what you’re doing is you’re paying for owning that fund So

Mike: 00:10:20

on the manager of a a mutual.

Mike: 00:10:22

I’m going to have to some buying and selling.

Mike: 00:10:23

I’m 40 hours a week, doing stuff.

Mike: 00:10:25

So I get paid by the investors.

Mike: 00:10:28

In my fund, Matt puts a dollars into my fund.

Mike: 00:10:31

I’m going to take a few pennies of that to pay myself, my salary.

Mike: 00:10:35


Mike: 00:10:36

So are we going to do that There’s different ways I could do it.

Mike: 00:10:38

I could say Matt at cool, out of your 10,000 bucks take 500 upfront

Mike: 00:10:42

and then really I won’t charge you.

Mike: 00:10:43

I’ll just charge you pennies from there So I’ll take a lot up front,

Mike: 00:10:47

I have more work to do upfront.

Mike: 00:10:48


Mike: 00:10:49

That’s called a shares.

Mike: 00:10:51

Front-loaded shares your $10,000 investment.

Mike: 00:10:55

You only actually get 9,500.

Mike: 00:10:58

I took $500 to pay myself

Matt: 00:11:00

right off the

Matt: 00:11:01


Matt: 00:11:01


Mike: 00:11:02

right off

Mike: 00:11:02

the top.

Mike: 00:11:02

So your investment is 9,500 bucks.

Mike: 00:11:05

And then from there you’re hardly paying anything.

Mike: 00:11:06


Mike: 00:11:08

Second is B shares their back end loaded.

Mike: 00:11:12

Okay, so you get your $10,000 investment, but if you ever sell Matt, I’m taking 500.

Mike: 00:11:19

I want your money to stay in my fund.

Mike: 00:11:22

So if sell, when you go ahead and sell down the road, I’m going to 500 Now,

Mike: 00:11:26

if you stay in for five years seven years or 10 years, it might go to zero.

Mike: 00:11:30


Mike: 00:11:31

So that backend load drops down over Those are B shares, how you pay for them.

Mike: 00:11:36

And finally, there are C shares where you pay a level load.

Mike: 00:11:39

All right.

Mike: 00:11:40

I’m just going to take 50 bucks a year from you, Matt, for your

Mike: 00:11:43

10,000 investment It’s going to be 50 bucks a year, no upfront fee.

Mike: 00:11:47

No, no backend fee.

Mike: 00:11:49

Just level load throughout.

Matt: 00:11:51

I I think how do I think about which of those is

Matt: 00:11:54


Matt: 00:11:55


Mike: 00:11:55


Mike: 00:11:56

If you’re going to be invested for the long-term backend

Mike: 00:12:00

loads can be really nice.

Mike: 00:12:01


Mike: 00:12:01

You need to compare what the ongoing maintenance fee for any of those?

Mike: 00:12:04


Mike: 00:12:06


Mike: 00:12:06

The C shares are going be a little bit higher than the because the

Mike: 00:12:10

only way I’m getting paid as the manager is level, load every year.

Mike: 00:12:15


Mike: 00:12:15

Versus a, I get a big upfront fee or B if redeem them I don’t get my every year fee.

Mike: 00:12:22

If you change out after six months, and that’s why I charge you way.

Mike: 00:12:25

So you have to compare the load time.

Mike: 00:12:27

And then how long are you going to own the shares?

Mike: 00:12:30

If you’re going to own them a long time, the end.

Mike: 00:12:32

load could make sense, because again, it gets stepped down.

Matt: 00:12:36

I see.

Matt: 00:12:37

W so could we make this could we make this kind did for let’s say I’m in a let’s

Matt: 00:12:42

say I’m in a Vanguard target retirement

Matt: 00:12:46

mutual fund.

Mike: 00:12:47


Matt: 00:12:48

Would that be Would that be the kind of where I intend to I intend to stay

Matt: 00:12:54

in that fund for 10, years years Backend

Matt: 00:12:58

loaded loaded class

Mike: 00:13:02

of those that you’re going to buy yourself are just going to be,

Mike: 00:13:04

C shares.

Mike: 00:13:05

They’re going to be level Yeah.

Mike: 00:13:07

That’s why I I to that expense ratio 0.1% 0.2%.

Mike: 00:13:12

That’s the expense ratio.

Mike: 00:13:14

That’s the shares level of.

Mike: 00:13:15


Mike: 00:13:16

That’s how they work.

Mike: 00:13:17

The . A and the B are really sold through advisors.

Matt: 00:13:21


Mike: 00:13:22

All right.

Mike: 00:13:22

I don’t want to get into the details, but if you’re working with

Mike: 00:13:24

an advisor and they’re saying, Hey, here’s a portfolio, we’re going set

Mike: 00:13:26

up for I recommend these things.

Mike: 00:13:27

I’ll take your a hundred thousand.

Mike: 00:13:28

We’ll invest it way.

Mike: 00:13:30

That’s where you want to ask the question.

Mike: 00:13:32


Mike: 00:13:32

Okay, what kind of, you what are the investments?

Mike: 00:13:34

How am I paying for them?

Mike: 00:13:36

We just talked about this last episode, right?

Mike: 00:13:38

What the investments?

Mike: 00:13:38

How am I paying for them?

Mike: 00:13:40

How’s coming Because I see.

Mike: 00:13:41

this all the time.

Mike: 00:13:43

Oh, you own a shares.

Mike: 00:13:44

spent, two years ago, 10,000 bucks, but you only really Got $9,000 of

Mike: 00:13:48

investment because that was the commission paid to the advisor that took that.

Mike: 00:13:56

That’s why they recommended those eight shares.

Matt: 00:13:58

Got it.

Matt: 00:13:59

So the Got it So the bottom I’m basically I’m basically taking I get

Matt: 00:14:03

with with most of that I would that I would buying into, but if I’m setting

Matt: 00:14:07

things up, so I should just be so I should just be in that case in that case

Matt: 00:14:12

with things that with things that I’d be setting up with an that’s that’s.

Matt: 00:14:16

will have a little you will have a little bit more control and you really should.

Matt: 00:14:20

You really

Matt: 00:14:20

All right

Mike: 00:14:21

these differences Yep There you

Matt: 00:14:22

let’s let’s let’s make sure to I think I I think I got the

Matt: 00:14:25

basics What about What about ETFs

Mike: 00:14:28

very similar.

Mike: 00:14:29


Mike: 00:14:30

In terms of you’re owning a mix of assets, just the mutual fund.

Mike: 00:14:34

So you can invest $10,000 in the full S and P 500, you get all 500 companies.

Mike: 00:14:39

One ticker symbol, one thing.

Mike: 00:14:41

So they’re very similar in that way.

Mike: 00:14:43

ETFs are relatively new they’re.

Mike: 00:14:45

First came around in 1993 with the S and P 500 was the first one.

Mike: 00:14:50

It’s a new way packaging.

Mike: 00:14:52

Think of it this way.

Mike: 00:14:52

It’s a new way of packaging.

Mike: 00:14:55

investment you could do it with mutual funds.

Mike: 00:14:56

Hey, my 10,000 bucks, I own this mix stocks and bonds or whatever.

Mike: 00:15:00

I can do the same thing with ETFs, but it’s a different wrapper

Mike: 00:15:04

around a a very similar investment.

Mike: 00:15:06

All right So think of it that way.

Mike: 00:15:07

Now the ETFs purchased and sold on the open market.

Mike: 00:15:11

So throughout the day when you click buy, you’re going to own them immediately.

Mike: 00:15:15

All right So you can buy and sell them throughout the day.

Mike: 00:15:19

So that’s very different told you mutual funds once a day, they do that match.

Mike: 00:15:23


Mike: 00:15:23

But ETFs throughout the day, you can and sell these things Just like you

Mike: 00:15:26

can stocks, you can own a single share.

Mike: 00:15:29

You can own fractional shares.

Mike: 00:15:32

So the fund had that minimum investment, $250.

Mike: 00:15:35

These Nope.

Mike: 00:15:36

You can own a single share fractional shares and trade on the open market.

Mike: 00:15:40

The other differences is.

Mike: 00:15:42

They’re based on supply and demand.

Mike: 00:15:44

So even though it’s S and P 500, which has, you can look up the, the exact

Mike: 00:15:49

all those 500 companies, how much they each are trading at that moment,

Mike: 00:15:53

the ETF version, maybe slightly above or below though, the 500 components.

Matt: 00:16:00

that does that mean

Matt: 00:16:01


Mike: 00:16:01

Now it usually they’re not so much.

Mike: 00:16:03

And me just say, before you ask a question, just that’s different to that.

Mike: 00:16:06

I didn’t say this about the mutual funds, but mutual funds up.

Mike: 00:16:09

At the actual price of the underline, most of the time, the price of the underlying

Matt: 00:16:15

see does that mean that mean then you were kind of watching ETFs even within

Matt: 00:16:21

a single day versus watching mutual ETFs would have ETFs would have more volatility

Mike: 00:16:26

they have more volatility throughout day, for sure.

Mike: 00:16:28

because they trade throughout the day mutual funds.

Mike: 00:16:30

In fact, this is a a good point, when you log in and look at your

Mike: 00:16:34

You know your account, the mutual fund won’t change price

Matt: 00:16:38

Oh, I

Mike: 00:16:38

the end the the

Matt: 00:16:39

and your ETFs, you thrilled at thrilled at 9:00 AM a dejected

Mike: 00:16:44

Yeah, In fact, it’s funny, you mentioned that because on my app

Mike: 00:16:47

where I’m like watching symbols, I have some mutual funds and they just

Mike: 00:16:50

sit there and yeah Why is this one?

Mike: 00:16:52

Not like going up like

Matt: 00:16:53

the phone It’s like update refresh refresh

Mike: 00:16:56

refresh Oh, that’s a five o’clock at night.

Mike: 00:16:59

Will it refresh?

Matt: 00:17:00

Got it.

Matt: 00:17:01

And um so you were explaining with mutual funds, are different

Matt: 00:17:05

there, are classes Are there are there different types of ETFs?

Mike: 00:17:09

There are different types ETFs.

Mike: 00:17:11

These aren’t so important.

Mike: 00:17:12

It’s more kind of the underlying logistics of how one has to work from certain areas,

Mike: 00:17:17

sectors the the market, but they’re, open-ended funds there’s unit investment

Mike: 00:17:22

trusts And there’s grant or trusts.

Mike: 00:17:25

Again, these are different kinds of rappers.

Mike: 00:17:27

They’re all under the ETF, but they’re to be a little bit different wrappers.

Mike: 00:17:31

That I wouldn’t be so about it because there’s no real and use difference in

Mike: 00:17:36

terms of the AA shares, B shares C shares.

Mike: 00:17:38

We talked about they can make a difference to you as an individual

Mike: 00:17:40

investor in terms of this.

Mike: 00:17:42

There’s nothing that I found so far that it makes any difference

Mike: 00:17:45

but I will come back to that.

Mike: 00:17:47

If at some point I noticed an important difference for

Mike: 00:17:50

consumers around those different

Mike: 00:17:52

types of

Matt: 00:17:53

Got it So it’s not like the with mutual funds where you know, if

Matt: 00:17:57

you’re setting something up advisor you really do need to be to be aware of

Matt: 00:18:00

the different classes per it’s just a

Matt: 00:18:04


Matt: 00:18:04


Mike: 00:18:05

that’s right Yeah Different Yeah.

Mike: 00:18:06

Different behind the scenes set up for

Mike: 00:18:07


Matt: 00:18:08

Well here’s what I want to do We’re about to about to get a whole

Matt: 00:18:11

lot lot more on this, difference with index funds et cetera.

Matt: 00:18:16

But for our radio our radio we need to wrap up the show right now.

Matt: 00:18:20

So again check check out close-up or or financial planning for

Matt: 00:18:25

entrepreneurs, if you want much more of this but for the radio the radio

Matt: 00:18:29

listeners, we’ll sign off right here.

Matt: 00:18:31

Thanks so much, Mike

Mike: 00:18:32


Mike: 00:18:33

Thanks for joining us on financial planning for entrepreneurs.

Mike: 00:18:36

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Mike: 00:18:40

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Mike: 00:18:44

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Mike: 00:18:50

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Mike: 00:18:52

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Mike: 00:18:55


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