Pros and cons of mutual funds versus ETFs: Dale Jackson

With the Feb. 29 deadline to contribute to a registered retirement savings plan (RRSP) fast approaching, millions of Canadians will be weighing the pros and cons of investing through mutual funds or index-linked exchange traded funds (ETFs).

Most Canadians currently invest for retirement through mutual funds either directly or through company pension plans, but ETFs have become increasingly popular over the past three decades as a less expensive way to add diversification to an investment portfolio.

The right choice depends on the individual investor as well as the individual investment.

Here are a few things to keep in mind if you are torn between a mutual funds and an ETF: