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Index Mutual Funds vs. Exchange-Traded Funds
By JLP | December 12, 2007
I was asked by SingleMa to write a post comparing index mutual funds and exchange-traded funds. I was about to do just that when I came across The Honest Dollar’s post titled Index Funds vs. ETFs. Lily, the blog’s owner, did such a great job comparing the two that I don’t think it is necessary for me to write a post on the topic.
To Lily’s excellent analysis, I might add that one thing I like about ETFs is that they can be sliced and diced (if slicing and dicing is your cup of tea) in ways that mutual funds cannot (read this post to see what I’m talking about), which can allow an investor to create customized portfolios.
So, if you’re interested in reading a comparison of index mutual funds and ETFs, check out The Honest Dollar. While you’re there, check out the rest of her posts. Her blog’s fairly new but I like what I have seen so far.
Topics: Blogging, Exchange-Traded Funds, Index Funds, Investing | 7 Comments »
December 12th, 2007 at 3:51 pm
You can slice and dice just as much with funds as with ETFs. Of course there are usually more choices in ETFs. On the other hand if you S&D you will have more rebalancing to do, which could make the transaction costs of ETFs much higher.
December 12th, 2007 at 4:05 pm
The “Index Funds vs. ETFs” link is going to a 404 error. Like it disappeared.
December 12th, 2007 at 4:09 pm
Swamproot,
That’s strange. Maybe it will pop back up. If not, it looks like I’m gonna have to write a post after all!
December 12th, 2007 at 5:26 pm
It’s been reposted. My apologies!
December 12th, 2007 at 7:23 pm
Thanks for the reference! I’m sure it’s good stuff.
December 23rd, 2007 at 3:17 pm
Belated thanks for the link to my post. I got a little flustered when I realized people were actually reading my site while I was still fiddling with just getting it up and running. A learning experience, to be sure. Thanks!
July 31st, 2009 at 8:09 pm
Thanks for explaining the advantages and disadvantages of ETFs. I am interested in investing in ETFs but am unsure of exactly how to go about it. Any help would be appreciated, you can contact me directly at laurenbeck@gmail.com