The pros of exchange-traded funds include ease of access through brokerage apps and retirement savings accounts

ETFs and mutual funds are both taxed on capital gains and on dividends

Many experts consider ETFs to be more tax-efficient—ETFs are less likely to trigger capital gains taxes that must be passed on to the fund holder.

ETFs vs. mutual funds: Which are better investments?

Exchange-traded funds and mutual funds have many similarities. They both invest in multiple companies under one fund and trade using the same securities (such as stocks and bonds). However, they have distinct differences—such as fees and management style—that can impact your bank account in the long term.

ETFs are rising in popularity

While less than half of retail investors hold ETFs in their portfolio, this figure is up dramatically in recent years, and experts forecast continued adoption as more options hit the market and total ETF assets under management continue to grow.

A bond ETF lets someone invest in multiple bonds through one single fund

There are risks, there are also major perks to buying a bond ETF, like the ability to purchase bonds on the stock market.

The first US ETF was launched in 1993

Exchange-traded funds are relatively new inventions, and they've grown significantly in popularity during their few decades of existence. They were first created as an alternative to mutual funds. A colorful visualization depicts the entire history of ETFs.

While the first exchange-traded fund (a 'basket' of different assets that can be bought and sold on a stock exchange) in the US only launched in 1993, the global ETF market has grown to more than $10T in the short time since.

The total cost of owning an ETF is the sum of the holding costs and the transaction costs

Holding costs include things like the expense ratio, or the annual fee that a fund issuer charges. Transaction costs include things like brokerage commissions, or the fee that a broker charges to enact a trade. However, in recent years, most brokers have essentially eliminated commissions on ETF trading.

Test your ETF knowledge

A 10-question quiz from the SEC allows investors to test their basic knowledge about exchange-traded funds and their investing counterparts, mutual funds. Here’s a sample question: Is the past performance of a fund a good indicator of future results? (Hint, the answer is no).

Retail investors can get exposure to commodities via various financial vehicles

While retail investors likely won't go out and purchase a bushel of commodity wheat to trade, they can get exposure to the commodities market via commodity ETFs sold on traditional stock exchanges like the NYSE and Nasdaq and other financial vehicles. There are benefits to adding commodities to a retail investor portfolio (such as a hedge against inflation and a typically low correlation with more traditional asset prices), experts caution that commodities are usually volatile investments.

Pros and cons of mutual funds

Depending on your personal investment goals and strategy, different funds can carry different risks and rewards for your portfolio. However, there are some pros and cons that stay consistent across funds, like easy portfolio diversification.

Biotech ETFs allow investors to gain exposure to multiple promising companies in the industry

Biotech ETFs offer a diversified alternative to purchasing an individual biotech stock and gambling on whether an individual company’s clinical trial yields the next blockbuster cancer treatment or an absolute flop. This list of the top biotech ETFs in 2025 can help you learn more about them.

Buffered ETFs are designed to protect investors from market downside while still providing exposure to upside

Investors typically hold them for a defined period before they “reset.” During periods of market volatility, buffered ETFs can seem particularly appealing.

Having two retirement accounts has its pros and cons

Contributing to both an IRA and a 401(k) lets you increase your retirement savings by about 30% every year. However, you’ll also spend more time actively investing that money and pay more in fees.

The SPDR S&P 500 ETF is one of the most highly traded funds on the market

State Street, a popular ETF issuer, is responsible for the SPDR S&P 500 ETF. This fund trades under the SPY ticker, and State Street maintains a web page with key facts and figures on SPY. For instance, its expense ratio is 0.0945%, or $9.45 on an initial $10K investment.

Real estate investment trusts help give portfolios more exposure to real estate

Also known as a REIT, a real estate investment trust is a type of company that invests in a portfolio of real estate, such as apartment buildings or malls. Investors can buy shares of the REIT to participate in its portfolio’s gains and losses.

Explore a guide to 529 college savings plans

Investors put after-tax dollars into these education-earmarked accounts, and like a 401(k) or IRA, they invest them into stocks, bonds, or funds. When it comes time to withdraw, investors do not pay any taxes on distributions. However, the money must be used for approved expenses like college tuition, textbooks, and trade schools.

Explore a step-by-step guide for getting started as a retail investor

Instead of purchasing individual stocks and bonds, new investors may want to start in funds that track an index—like the S&P 500—or that hold a group of themed stocks.

Certain trusts can bypass estate taxes—but the terms can't be changed

Putting money and other financial assets in an irrevocable trust is one way to avoid estate taxes. There are some cons to this trust, like the fact that you can't change the terms of the trust or assets in the trust after they're set. But a big pro is that any financial assets in an irrevocable trust aren't considered part of your estate, meaning they aren't subject to death taxes.

Pros and cons of tariffs

While some mainstream economists are skeptical about tariffs, President Donald Trump is bullish on them. The pros and cons of tariffs include their ability to help governments raise money and the potential for retaliatory tariffs.

Not all alternative investments are easy to invest in

For instance, some alternative investments are only available to accredited investors or high-net-worth individuals. Others have relatively high fees compared to traditional investments.

Going public has pros and cons for a company

An organization transfers ownership over to new shareholders—who could be anyone—following its IPO date. However, going public expands a company’s ability to increase funding and grow its business. This guide dives into the advantages and disadvantages of going public, and what those pros and cons can mean for investors.

Watch a breakdown of tax breaks most Americans don't know about

Programs like healthcare savings accounts or flexible spending accounts are tax-free accounts that are designed to help lower healthcare costs. However, many Americans don't use them and don't understand how they work.

There are ETFs that track lawmakers' stock purchases

If you can’t get enough politics in your life, why not invest like a politician? Because members of Congress are required to disclose their stock purchases, you can do just that, and the NANC and KRUZ ETFs make it even easier. NANC, referencing Nancy Pelosi, holds a basket of stocks that Democratic politicians have purchased. KRUZ, referencing Ted Cruz, holds a basket of Republican-held stocks.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Crypto exchanges are online platforms to buy, sell, and exchange cryptocurrencies

Crypto exchanges have grown alongside and fueled the boom in digital currencies. Popular exchanges like Coinbase, Kraken, and Binance each have separate features, fee structures, and more. You can learn how to begin with the platforms, how to carry out research, and when to be aware of the associated risks.

How fee-free Robinhood makes money

Robinhood is both loved and hated by retail investors. Although its mobile app is easy to use and transactions on its platform are fee-free, many individuals have taken issue with a controversial practice that drives 75% of its revenues. Robinhood uses payment for order flow, essentially taking payment from other brokerages to redirect users’ trades. Read up on how PFOF works here.

The benefits of cryptocurrency and blockchain technology

At the root of cryptocurrencies' allure is blockchain technology, an innovation bringing profound transformations to industries, especially the financial industry. This simple article breaks down the difference between cryptocurrencies and blockchain as well as the benefits of each.

Learn how to read a prospectus, the juicy document that any company must file with the SEC before going public.

Venture capital is a form of funding provided to early-stage companies with high growth potential, typically in exchange for an equity (or ownership) stake

Dozens of S&P 500 stocks, including Coca-Cola and Walmart—known as the dividend aristocrats—have increased dividends every year for 25 years

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

Warren Buffett's former professor Benjamin Graham is known as the 'father of value investing,' a strategy in which investors seek to buy stocks trading below their intrinsic worth.

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

Telehealth demand for GLP-1s for weight loss is booming as consumers seek easier access.

'Silent' fireworks have gained more interest in recent years as a quieter celebratory option.

Some renewable energy sources may weaken the resiliency of electric grids by removing outage buffers provided by coal- and natural gas-fired plants, which provide the system with more time to find a new power source if a plant goes down.

Art theft is the third-largest source of criminal revenues worldwide, thanks in part to the subjective nature of valuing a work of art.

Lesser-known phobias include turophobia, or the fear of cheese, and nomophobia, the fear of being without your cell phone.

Some Pokémon have been named after real and fictional organisms, while some real-world species have been named after Pokémon, such as Chilicola charizard and Binburrum zapdos.

The United States is one of only around two dozen countries with a fully federal system of government, in which power is divided between national and state governments.

Children are now three times more likely to say they want to be a YouTuber when they grow up than an astronaut, with some even attending 'YouTube camps' that teach kids how to create content for the platform.

In 2025, four executives from large tech companies were given positions in the US Army Reserves—including Palantir Chief Technology Officer Shyam Sankar, which reinforced Palantir's ties with the US military and its role as a leading defense partner.

Long before Major League Baseball began allowing instant replay for balls and strikes, an umpire reluctantly used the technology to determine whether a hit was a home run, a move that inadvertently ushered in a new era for the sport.

Use this tool to calculate the dollar value of your parental mental load, from meal planning to coordinating after-school care, then see resources that help generate solutions.

Hookworm infection, though risky, may help fight certain autoimmune conditions by tamping down the immune system's inflammatory response.

20,000 letters to the advice columnist 'Dear Abby' provide insight into prevailing sex, religion, and LGBTQ fears, anxieties, and concerns from the 1950s onward.

As of 2025, the most cited papers in science include a review of graphene, methods to improve image recognition, streamlining electron density calculations, and optimizing protein studies.

Objects can be 3D printed with light by projecting 2D computerized tomography (CT) scans onto rotating cylinders of resin, which solidify upon exposure.

Mark Twain spent decades feuding with the US Postal Service, convinced its costs and regulations were bureaucratic overreach.

Explore an interactive map of battles from the American Revolution, along with detailed summaries of each engagement