Some background on my question: Recently I have opened a Merrill Edge self-directed Roth IRA. I am slowly adding to it. I have had an etrade account with some stocks in it since about 2008…lots of random junk.
I started buying into some ETFs this year. As I have been doing this I came across ETG on my Merrill and assumed it was an ETF, based on their write up and data presented. But. apparently it is a mutual fund. I only bought 5 shares of it and didn't know it was a mutual fund until i reviewed my account holdings. This surprised me because, based on google and what I can find there, a mutual fund requires a lump sum of money and is not sold as individual “shares” like a stock or ETF can be. This was confirmed when I tried to buy a different lower cost mutual fund (SVAAX) in “shares” and the app said a minimum of $250 was needed to buy in with it.
So, my question is what determines when you buy a position vs buying a share? And really any clarity around ETFs vs Mutual funds. Both are managed active or passively and I'm just lost on specifics.
I'm not sure if I used the correct terminology in all of this. I am not a seasoned trader, just a guy working towards a good supplement for my wife and my retirement one day in the next 20 or so years.
Thank you for any thoughts that you are able to share or any references that I may have missed along the way.
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