Quote:
Originally Posted by BayMoWe335
ETFs trade like stocks, have no load, and typically have cheaper expense ratios. Mutual funds settle at the end of the day so the price only changes once per day, not every second like an ETF or stock. There is nothing wrong with owning them.
For example:
VTI - Vanguard Total Stock Market Index (ETF)
VTSMX - Vanguard Total Stock Market Index (Mutal Fund)
They have identical performance. The only difference is VTI costs 0.04% to own, VTSMX costs 0.15% annually. You can also buy VTI at no commission if you hold it at least 30 days. Essentially a no brainer.
I own both VTSMX and VTI, but I've transitioned over to almost all ETFs. Just easier to buy, cheaper (in some cases), and easier to trade since they are like stocks.
You can enroll in DRIP in both. You cannot buy partial shares of an ETF (as you can in mutual funds) unless it's part of a DRIP. Mutual funds also typically force you to have a minimum amount invested. Now that I wrote all this out, mutual funds are pretty worthless in comparison. Their prices might be a bit more stable in a moment of panic (doesn't matter over time).
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Well, that's basically what I've come to conclude based on my research as well. I suppose at the end of the day I'm hesitant to pull the trigger and potentially lose. Yet I don't want the miserable returns of a safe investment like a GIC which pays next to nothing.
I guess basically I need to grow a pair and pull the trigger.
I'm seeing ranges on the ETF's from around 5% to 13% (depending on timing and other factors, and only looking at one year growth which isn't indicative all the time. Have to do more research before buying.
Are those percentages in line with what you are seeing as well? Any other investment vehicles I should be considering that don't require active day to day management?