In addition, ETFs still settle at trade date plus two (known as T+2, which is a settlement cycle for securities transactions), whereas mutual funds still settle at trade date plus one. So when we trade accounts to raise money, ETFs take two days to settle and mutual funds take one day. A lot of clients don’t understand that, so when they need cash and want it wired to their bank account they wonder why there’s a delay when they sell from an ETF. It’s a small matter, but it’s still there.

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