2) The significantly lower costs of index funds will ensure that on average, index fund investors will have better returns than their
managed mutual funds counterparts.
So I can see how ETFs can potentially become more overvalued or undervalued compared to
their mutual fund counterparts.
These are just a few of the reasons why the average annual fee for an ETF is significantly lower than
its mutual fund counterpart.
When selecting exchange - traded funds, my first choices are Vanguard ETFs for their low - cost, just like
their mutual funds counterparts.
Many brokerages have ETF's that match
the mutual fund counterpart.
Like
their mutual fund counterparts, they appeal to investors who believe the extra cost will generate so - called «alpha» or outperformance relative to the indexes.
At best, one hedge fund manager in five outperforms
their mutual fund counterparts, and those winners are essentially impossible to identify in advance.
So I can see how ETFs can potentially become more overvalued or undervalued compared to
their mutual fund counterparts.
ETFs offer greater tax efficiency compared to
their mutual fund counterparts.
Bajaj Allianz Life Goal Assure has some good equity funds and a series of investment strategies that resemble
their mutual fund counterparts such as Systematic Transfer Plan (STP).