Mutual Funds and ETFs

Economic ETF trading size considerations This article discusses some considerations regarding efficient ETF trading and economic trade sizes. At the end of this section, you will also find two tables on ETF brokerage and trading cost amortization over 1, 3, 5, 10, and 20 year holding periods. There is one table on do-it-yourself ETF discount […]

Are ETF management expenses really lower than mutual fund management expenses? Yes and no. When you look at the full range of ETF management expense ratios, you find the most ETFs have a management expense ratio under 1% per year. In contrast, the average expense ratio for mutual funds exceeds 1%, so obviously the majority […]

ETFs are for experienced securities traders with open eyes Some of my time, I work directly with paying clients to develop comprehensive lifetime financial plans and investment plans. I always explain the virtues of a globally diversified, fully passive, very low cost, index fund investment strategy. This is consistent with this website and with my […]

Exchange-traded funds (ETFs) versus mutual funds This article provides information about low cost ETFs, which account for only a few percent of the thousand plus ETFs and other exchange-traded products (ETPs) available to US investors. This article covers certain topics related to ETFs that are important to the investor who intends to use very low […]

Where to purchase mutual funds and ETFs Whenever possible, low cost no load mutual funds should be purchased directly from mutual fund families that deal with the public. Otherwise they should be acquired through some other low cost channel such as a discount brokerage account. It only makes sense to purchase funds through the most […]

Do not buy mutual funds and ETFs through high cost vendors All mutual funds and ETFs are not created equally. Most are created to serve the business interests of the financial industry rather than to deliver investment vehicles that are likely to serve the best interests of individual investors. Do not purchase any mutual funds or […]

Do your mutual fund and ETF investment research – and do it BEFORE you buy Screened mutual fund and ETF lists are very helpful to any investor who wishes to focus on low cost mutual funds and ETFs. However, this is just the beginning of the investment process and not the end. Always understand any […]

Too few low cost mutual funds and ETFs – Far too many high cost funds In screening and selecting low cost mutual funds and ETFs, you should understand this involves sorting and screening thousands of mutual funds and ETFs using databases from data vendors such as Morningstar and/or Lipper. It is shameful just how few low […]