Question

With 500,000.00 in investments please create a simple chart comparing ETF's, Mutual Funds and Stocks.

The chart must answer these questions.

do they have fixed maturities? control over capital gains? diversification? what are the fees? marginable?

Answer 1

ETF	Mutual Funds	Stocks
There is no fixed maturity	There is no fixed maturity	There is no fixed maturity
Capital gains may be taxed as short-term or long-term at lower rates or same rate as other income, based on jurisdiction	Capital gains may be taxed as short-term or long-term at lower rates or same rate as other income, based on jurisdiction	Capital gains may be taxed as short-term or long-term at lower rates or same rate as other income, based on jurisdiction
They offer diversification benefit, as the portfolio is invested in a large number of securities across various sectors	They offer diversification benefit, as the portfolio is invested in a large number of securities across various sectors	There may or may not be diversification benefit, based on the number of stocks invested in, and the sectors invested in.
ETFs usually track indices, and there is no active management. Hence, fee is lower than mutual funds	Mutual funds that track indices have lower fee. Mutual funds that are actively managed have higher fee	There is no fee. However, brokerage or commissions are payable by the investor to the broker
ETFs can be used as collateral to avail margin from the broker.	ETFs can be used as collateral to avail margin from the broker.	ETFs can be used as collateral to avail margin from the broker.