Mutual Funds

Members looking for the benefits of the stock market with the potential for more diversification.

• Stock market mutual funds invest in a portfolio of individual stocks and look to increase the value of your investment through appreciation
• Offers diversity with the ability to invest in low- and high-risk investments to include different business sectors, geography, and market capitalization
• Your profits are taxable unless they’re in certain tax-qualified retirement accounts or education accounts²
• Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective.

Members looking to invest in corporate or government bonds.

• Choose bond mutual funds that typically offer a steady return, high yield bonds with more volatility, or bonds that consider your tax status
• A bond mutual fund will explain key factors, including objective, types of investments it makes, paying dividends and capital gains, and more
• A bond fund will also disclose its tax status and tax-free income

Members looking to trade mutual funds that may offer lower fees than a typical mutual fund.

• Fund managers “passively manage” ETFs since they are typically tracked as an index, such as Dow Jones Industrial Average or S&P 500
• Trade orders may be executed during the day
• ETFs do not have a “load fee"
• You may have more control over the timing of capital gains and when taxes are incurred
• ETFs trade like stocks, are subject to investment risk, fluctuate in market value, and may trade at prices above or below the ETF's net asset value (NAV). Upon redemption, the value of fund shares may be worth more or less than their original cost. ETFs carry additional risks such as not being diversified, possible trading halts and index tracking errors.

Members looking for an easy and familiar way to invest. 

• May provide you with a steady stream of interest income while keeping your money available to you
• Pays dividends or a rate of return
• Dividends that you receive are taxed as ordinary income unless you’re invested in a tax-exempt fund
• Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.