Mutual funds or ETFs?

[Asher]

Pick your poison. Explain caveats.

Goal is long-term diversified investments, typically tracking indices (TSX, NASDAQ, S&P 500, EAFE, etc). From what I've determined, a mutual fund actually makes sense for these if I would be making regular smaller contributions (like ~$300 in each per month, for instance).

Once the mutual fund holdings reach a sufficiently high value, I'd perhaps swap it for an ETF tracking the same indices. The goal here is to avoid the higher management fees with mutual funds longer-term, while avoiding the higher transactional costs of ETFs that I would otherwise incur monthly.

Good idea, or bad?

In general, mutual funds or ETFs or "it depends"?

[Asher]

Follow-up question: Currency-neutral or no, for buying US index-tracking funds?

Given the high value of the CDN dollar right now, my gut is telling me to avoid currency-neutral. Yes?

[Al B. Sure!]

Cue Kuciwalker, "Asher knows nothing beyond a very narrow specialty of computers!"

Asher, ETF's are a TYPE of mutual fund.

[Asher]

Cue Kuciwalker, "Asher knows nothing beyond a very narrow specialty of computers!"

Asher, ETF's are a TYPE of mutual fund.

And you have a DEGREE in finance?

[Al B. Sure!]

And you have a DEGREE in finance?

Yes. I have a BBA in Finance.

And yes, ETF's are a type of mutual fund.

Are you trying to ask "actively managed mutual fund vs. ETF?"? "Open-ended vs. ETF?"?

[Egbert]

Why is there no banana option?



Anyway, It depends.

[Asher]

Yes. I have a BBA in Finance.

And yes, ETF's are a type of mutual fund.

Are you trying to ask "actively managed mutual fund vs. ETF?"? "Open-ended vs. ETF?"?

An ETF is not a mutual fund. Even an index-tracking mutual fund is not an index-tracking ETF.

Get your **** together.

[Asher]

Albie, mutual funds and ETFs are both open-ended funds. But an ETF is not a mutual fund.

[Al B. Sure!]

Albie, mutual funds and ETFs are both open-ended funds. But an ETF is not a mutual fund.

http://en.wikipedia.org/wiki/Mutual_fund

Types of mutual funds
Open-end fund, forms of organization, other funds
Exchange-traded funds

And you're right. ETF's are open-ended. I was tripping. What threw me off are that they can be traded above or below NAV.


And don't mock me. I haven't worked in this field and am 3 years stale.

[Bugs ****ing Bunny]

Do you want to define what these are? They may be know by different names in other financial systems.

[Asher]

http://en.wikipedia.org/wiki/Mutual_fund



And you're right. ETF's are open-ended. I was tripping. What threw me off are the NAV's.

If you twist the definition of mutual funds to mean an open-ended fund, then yes it's a mutual fund.

Anyone with more than $5 to their name wish to join the conversation now?

[MRT144]

I have a snowboard heavy portfolio.

[Asher]

Do you want to define what these are? They may be know by different names in other financial systems.

I think you call mutual funds unit trusts in the UK. Or ICVCs.

I don't know about exchange-traded funds in the UK. Aren't they the same?

[Al B. Sure!]

If you twist the definition of mutual funds to mean an open-ended fund, then yes it's a mutual fund.

Anyone with more than $5 to their name wish to join the conversation now?

I said don't mock me. I haven't worked in this field and am 3 years stale.

Don't work in computers at all after receiving your Comp Sci degree and see how much you can remember accurately on the spot after 3 years.

[Asher]

I wouldn't mock you if you didn't jump in to tell me I'm wrong when I was right.