Mutual funds or ETFs?

[Hauldren Collider]

invalid poll

[Aeson]

I have more than $5 to my name, so never fear Asher, I can give you the scoop. You want guns, preferably ones that are likely to be banned by legislation very soon. You also want gold. Golden guns would be the "sweet spot" you should shoot for (not the video game or movie though... when bandits come to take your food and women are you going to fend them off with a video game? Probably not unless they really like to play Nintendo.)

[Aeson]

And it's not all that clear whether this is a valid poll or not. Asher just might have a banana in his depends.

[Al B. Sure!]

I have more than $5 to my name, so never fear Asher, I can give you the scoop. You want guns, preferably ones that are likely to be banned by legislation very soon. You also want gold. Golden guns would be the "sweet spot" you should shoot for (not the video game or movie though... when bandits come to take your food and women are you going to fend them off with a video game? Probably not unless they really like to play Nintendo.)

The sweet spot:

[KrazyHorse]

Calling ETFs mutual funds is an abuse of terminology.

As to the original question, it depends how long you're going to hold the position and how much you're putting in. The standard wisdom is that the ETF costs you less to hold while the fund costs you less to enter and leave.

The biggest difference in asset management land (for investors who do not qualify to buy into hedge funds) is between active management and passive management. Relative to that, the cost difference between an index ETF and the equivalent mutual fund is likely to be pretty small. As always, though, shop around for the best deal.

[SlowwHand]

The sweet spot:

Nice.

[MRT144]

I have a sandwich heavy portfolio.

[C0ckney]

i think clearly the best investments are drugs and *****es. great returns, as long as you keep your rocks spotless and your hoes topless.

[Asher]

Calling ETFs mutual funds is an abuse of terminology.

As to the original question, it depends how long you're going to hold the position and how much you're putting in. The standard wisdom is that the ETF costs you less to hold while the fund costs you less to enter and leave.

The biggest difference in asset management land (for investors who do not qualify to buy into hedge funds) is between active management and passive management. Relative to that, the cost difference between an index ETF and the equivalent mutual fund is likely to be pretty small. As always, though, shop around for the best deal.

Thanks. What about the currency neutral funds? I don't expect the Canadian dollar to rise against the US much more, and if anything to fall a bit. That means avoiding the currency neutral at the moment is prudent, no?

[Bugs ****ing Bunny]

Do you have anything similar to OEICs (Open-ended investment companies) over there? Think unit trusts, but with a wider range of investment capabilities.

Edit- ignore this. I missed your mention of ICVCs.

[loinburger]

I'm a lazy investor, so my money started in mutual funds and stayed there even when I got enough to possibly justify moving it to ETF's. However, Vanguard (where I have my mutual funds) significantly lowers the management fees once you pass a certain investment threshold, which when coupled with the capital gains I'd have to pay from moving money around justifies keeping the money where it is.

ETF's aren't an option for my 401K - there my only option is whether to put the money in a small, medium, or large-cap index fund, so I went 30/30/40.

[Asher]

Do you have anything similar to OEICs (Open-ended investment companies) over there? Think unit trusts, but with a wider range of investment capabilities.

Edit- ignore this. I missed your mention of ICVCs.

It's interesting how every country has something similar but slightly different with different names.

[pchang]

Vanguard Total Stock Index. Vanguard Total International Index. No load and management fee is about the same as ETFs. TSX is really too narrow.

[Asher]

Vanguard Total Stock Index. Vanguard Total International Index. No load and management fee is about the same as ETFs. TSX is really too narrow.

But that's why it's just a part of the portfolio. My current plan was 40% TSX, 20% US Index, 20% NASDAQ, 20% International. Vanguard Total Stock looks to be just US?

The TSX index has outperformed the US one for over 11 years now in general. There's also currency issues for me, remember.

[Asher]

Total Stock also has a $3000 minimum purchase, which means I wouldn't be able to do incremental monthly purchases.

It's got a 2.45% average return the past 10 years, the TSX fund is 6.02%.
Past 3 years, Total Stock's average was -1.74%...TSX was 3.89%.