Comments on: Comparing ETF and Mutual Funds http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/ A site to share my tips, tools, and humble thoughts on the journey to wealth Tue, 09 Mar 2010 19:18:58 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Frugal http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/comment-page-1/#comment-1471 Frugal Sun, 08 Oct 2006 14:21:02 +0000 http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/#comment-1471 That's a good summary, Trent. That’s a good summary, Trent.

]]> By: Trent http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/comment-page-1/#comment-1470 Trent Sun, 08 Oct 2006 13:22:55 +0000 http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/#comment-1470 The main advantages of an ETF are for either day-traders (who can time their entry and exit) or for very long-term holders, who will benefit from the tax-efficiency. The main advantages of an ETF are for either day-traders (who can time their entry and exit) or for very long-term holders, who will benefit from the tax-efficiency.

]]> By: Frugal http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/comment-page-1/#comment-1464 Frugal Wed, 04 Oct 2006 18:47:42 +0000 http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/#comment-1464 The advantage of ETF is for trading. In the very long term however, I agree that low-fee mutual fund may be slightly better. I will be careful with any expense ratio of more than 0.7% for non-specialized mutual funds. In summary, you will pay bid/ask spread at the time of buying/selling ETF which you don't need to incur for mutual funds. The biggest swing factor is still how you buy/sell your mutual fund/ETF, whether you pay $17 at Scottrade everytime you rebalance or buy, or you pay $0 at FirsTrade or Vanguard everytime. The assumption here is that you don't do the free automatic dollar investing. The advantage of ETF is for trading. In the very long term however, I agree that low-fee mutual fund may be slightly better. I will be careful with any expense ratio of more than 0.7% for non-specialized mutual funds.

In summary, you will pay bid/ask spread at the time of buying/selling ETF which you don’t need to incur for mutual funds.

The biggest swing factor is still how you buy/sell your mutual fund/ETF, whether you pay $17 at Scottrade everytime you rebalance or buy, or you pay $0 at FirsTrade or Vanguard everytime.

The assumption here is that you don’t do the free automatic dollar investing.

]]> By: Ray http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/comment-page-1/#comment-1463 Ray Wed, 04 Oct 2006 17:11:40 +0000 http://www.1stMillionAt33.com/2006/10/comparing-etf-and-mutual-funds/#comment-1463 There was an article recently in Forbes or Kiplingers in the last month or two which addressed this same issue. After doing all the math and figures it was determined that a mutual fund offers a greater monetary advantage over ETFs. There was an article recently in Forbes or Kiplingers in the last month or two which addressed this same issue. After doing all the math and figures it was determined that a mutual fund offers a greater monetary advantage over ETFs.

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