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Navigating Mutual Funds vs. Exchange-Traded Funds
Exploring the historical roots and tax implications of mutual funds and exchange-traded funds, this chapter sheds light on their subtle differences at an academic level but practical similarities for financial independence. The discussion underscores the efficiency and cost-effectiveness of ETFs over mutual funds, especially in terms of tax consequences. From tax efficiency to ease of buying, the chapter provides insights on why ETFs might be favored over mutual funds, with a glimpse into potential future trends.