ETFs may have lower
costs than traditional mutual funds, so keep ETFs in mind when selecting the mutual funds in which to invest.
Not exact matches
Among those who are failing to get excited about active ETFs, James Peters, CEO of Tactical Allocation Group, managing more
than $ 1.5 billion in three ETF - based portfolios, says: «I don't see where they add any compelling value other
than being cheaper in
cost and having a tax advantage over the
traditional mutual fund.»
The Exchange Traded
Fund (ETF) industry has enjoyed very strong growth in recent years: ETFs are seen to be more transparent, lower
cost, and over the medium term better performing
than the majority of
traditional actively managed
mutual funds, whilst being just as safe.
Andrew: For investors dollar -
cost - averaging into or out of something, I think it may be best to use
traditional mutual funds rather
than ETFs so as to eliminate the commissions completely.
This means that not only are you getting a better constructed portfolio at a lower
cost than a
traditional fund, but you are also likely to outperform most
mutual funds over the long run as well.
ETFs are seen to be more transparent, lower
cost, and over the medium term better performing
than the majority of
traditional, actively managed
mutual funds, whilst being just as safe.
Rather
than picking stocks directly or using
mutual funds where a manager is trading stocks on behalf of similarly minded investors,
traditional index
funds aim to replicate the returns of any given benchmark while aiming to minimize both
costs and something called tracking error.
With this investment strategy analyzer, you won't have to believe everything you read; nor take anyone's word about things like: ETFs are the most efficient and inexpensive way to invest, there's no sales charges on
mutual fund B - shares if you don't sell them, Roth IRAs are better
than traditional IRA / 401 (k) s, or the tax benefits of 529 plans, whole life (VUL), or any kind of annuity will make up for the huge
costs; lack of liquidity / choices / control, etc..