Hey Money Wizards,
So you’ve decided to pass on becoming one of the 99% of stock traders underperforming the index, and you’ve opted for the time tested, Warren Buffet approved strategy of index fund investing.
Unfortunately, there are quite a few options for index funds, and one of the most common questions I get is whether to invest in an ETF or Mutual Fund.
I can remember this overwhelming decision well, and I’d have killed for an easy to understand breakdown between the two choices.
Well, sometimes we’ve got to take matters into our own hands. So I recently wrote a featured article over at InvestmentZen.com breaking down the differences between ETFs and Mutual Funds.
If you’re looking for a comparison between the two choices and want to hear some of my recommendations, go check out my guest post!
Guest Post: ETFs vs. Mutual Funds at InvestmentZen.com
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Thanks so much for the clear distinction. You’ve just saved me $50 a year (I’ve set up an automatic monthly purchase of ETF’s with Sharebuilder that costs me $3.95 a trade…of the vanguard total stock market ETF). Now I’ll stop that and save up enough to get over the $10K threshold for Vanguard’s mutual fund expense ratio difference.
Great to hear!
One point not mentioned in the article – Vanguard charges no brokerage commission on their ETFs, if purchased through Vanguard.com. I still prefer the mutual fund option for most people, even without the $10,000, especially since Vanguard Mutual Funds can be converted to ETFs without any taxable events, but not vice-versa.
Sufficiently confusing?
Great post, thank you for the clarification.
Thanks!