In
my last article, I gave an overview of stocks and fixed income/bonds. In this article, I will give an overview of mutual funds and exchange-traded funds (ETFs). Mutual funds and ETFs contain other investments inside of them.
Mutual funds have been around a long time. The first modern mutual fund launched in the U.S. in 1924 and the oldest mutual fund still in existence is the Vanguard Wellington Fund (VWELX), which started in 1929. Mutual funds pool money from investors to purchase investments, which can include stocks, bonds and/or other assets. They are a great way for a small investor to build their wealth.