4 ms·
ETFs are different, not strictly better. Given an ETF and mutual fund with the same expense ratio, the choice is simply a matter of preference. An ETF allows
by p1mrx 14y ago
ETFs are different, not strictly better. Given an ETF and mutual fund with the same expense ratio, the choice is simply a matter of preference.
An ETF allows you to buy/sell at any time throughout the day, while a mutual fund lets you buy fractional shares, and make atomic transfers to other funds. ETFs have a bid/ask spread, while mutual funds trade at the day's closing price.
If you do frequent trading, then ETFs are the obvious choice (but frequent trading is generally a good way to lose money.)
- AjithAntony 14y agoIt may depend on the funds, but for both the fidelity and vanguard index funds, there are no transaction fees to buy (at least in an IRA in their respective accounts). If I were to make the same periodic investments via ETF, then I'd be paying a commission on each purchase.
- hkmurakami 14y agothe wells Fargo PMA account gives you 85 trades/yr for free (min acct balance of $35k) so that is enough trades for most people