The Clark Howard Podcast 02.23.26 Invested Savings: ETFs vs. Mutual Funds / The Truth About Pet Wellness Plans
Feb 23, 2026
A lively breakdown of ETFs versus mutual funds and why tax treatment can change your taxable account outcome. A warning about mutual-fund phantom taxes and when swapping to ETFs might make sense. Practical tips on handling HSAs and life insurance timing as income grows. A cautionary look at pet wellness plans and hidden billing traps to watch for.
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Why ETFs Beat Mutual Funds In Taxed Accounts
- ETFs and mutual funds are structurally similar but differ in purchase mechanics and tax treatment.
- Clark Howard explains ETFs trade like stocks and generally avoid the mutual fund "phantom income" tax in non-retirement accounts.
Avoid Taxable Sales When Switching To ETFs
- Do not sell mutual funds in a taxable account just to buy ETF equivalents because that sale can trigger capital gains taxes.
- Wait for a tax-free conversion option from your provider (e.g., Vanguard) or only use ETFs for future purchases.
Use ETFs For New Taxable Investments
- For new investing in regular (taxable) accounts, buy the ETF equivalent of the mutual fund you like.
- Clark notes ETFs often have lower expenses, better tax treatment, and trade intraday like stocks.