1. Common Cents Investment Group Mutual Funds & Exchange Traded Funds Tuesday October 8 th

2. Mutual Funds Popular way to diversify account ◦ Each stock selected specifically Goal is to beat the market ◦ 80% do not beat the market Higher expense ratios Minimum investments ◦ $500 - $2,000,000

3. Exchange Traded Funds - ETF Bought and sold during market hours ◦ Place like stock – stop, limit orders Stocks within fund passively managed Great for diversification ◦ Track index ◦ Track industry or sectors ◦ Commodities ◦ Emerging market countries

4. ETF Growth Courtesy of schwab.connectsolutions.com

5. Overall Comparison Exchange Traded FundsMutual Funds Traded during market hours All equities in index/industry selected (passive) Holdings updated daily Lower expense ratios Generally lower commissions ◦ Good for buying ‘frequently’ Less actively managed Usually no minimum investment Traded after market close Equities specifically chosen (active) Holdings updated quarterly Higher expense ratios Sometimes higher commissions ◦ Better for buying ‘infrequently’ More actively managed ◦ Short term tries to beat market Minimum investments

6. Example ETF’s

7. IBB - continued

8. Example Mutual Fund

9. VICEX - continued