- ETFs are generally cheap to hold but can be expensive to buy, while index funds are easy to buy but slightly more expensive to hold.
- If you invest a lot all at once, the ETF is probably a better choice. If your investing is spread over time—just a small portion of each paycheck, for example—then index funds might be cheaper.
Resist the Temptation to Trade:ETFs are easy to buy and sell, which make it tempting to try to gamble your way to riches by buying and selling them frequently.
- Some have high expenses—though they're almost always lower than a comparable mutual fund—and others, especially specialized ETFs (such as those that trade commodities), might not shield you from taxes
Tuesday, April 29, 2008
ETF's or index funds?
ETF's or Exchange Traded Funds are becoming popular investment vehicles due to their tax advantages and low fees. Business Week offers advice.
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