There are also many open end no load funds with low expenses available that so the same thing. Look at Morningstar.com.

Here’s a quick look at some of the posts that caught my eye over the past week…

JLP talks about how to buy an exchange traded fund (ETF).
FMF talks about whether parents or kids should pay for college. It’s an interesting question, …

I’d have to agree with Suresh here. From the sound of the reader’s question, I’d recommend she learn about the basics of investing first before just jumping in with an ETF. I own several ETFs and have written about some of my experiences with them, but understanding why you’re investing, your approach, and your goals are fundamental and important to establish first before diving in the stock market with your cash, be it for stocks, ETFs, bonds, or what have you.

If you are buying/trading a security/fund/whatever, and are doing so for retirement/savings reason (i.e., you actively want to save) then maybe the commission/fees can be disregarded in a way. You are making the effort to stash some of your income away for future growth and eventual use, so the $4 charge could be offset (in your mind at least:) ) by the fact that you are strengthening your future financial position rather than keeping that money in the bank which you will – almost without question – manage to spend on something with no where near the financial returns the stock/fund will ultimately bring.

Thus, ironically, you pay a premium for (hopefully) securing your financial future, but this cost can be balanced by the actual act of saving/investing rather than spending the money.

Very waffle-y, I know, and perhaps someone could(already has?) word this a little better, but I hope this helps the cost-benefit balance towards people investing/putting money away in inflation-beating securities for the future.

I know charges can eat up returns, but wouldn’t you rather spend money investing in your financial future than on another overpriced double mocha frappachino!