I was just thinking of this a few weeks ago. I still like mutual funds for ease of use with recurring purchases.
With an ETF I have to set a limit order and always end up with spare $$ left over since I can't buy partial shares. Yes, some brokers allow this and maybe more will in the future, but right now it's a pain. Then you have to factor in the inevitable gap up or down at the open that could cause the order to not even fill. Mutual fund, I invest XXX amount on a continuing basis and I know it will get all the money in at end of day price.
People who split hairs over fees are like the people who switch to a new money market provider every few months because the other guy is offering a yield that is .2% higher. It really doesn't matter.
https://www.morningstar.com/articles...l-mutual-fundsConsequently, ETFs are positioned to overtake mutual funds. That event won’t happen anytime soon, because mutual funds possess the power of history. Currently, U.S. mutual funds hold $18.2 trillion in assets, as opposed to $5.5 trillion for ETFs. But the outcome appears inevitable. ETFs offer several advantages that mutual funds cannot match, without counterbalancing drawbacks. Eventually, assets will be on their side.
SPY (C Fund) (delayed) (Stockcharts.com Real-time) |
DWCPF (S Fund) (delayed) (Stockcharts.com Real-time) |
EFA (I Fund) (delayed) (Stockcharts.com Real-time) |
BND (F Fund) (delayed) (Stockcharts.com Real-time) |
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