A lot has been made of the difference between ETF and mutual fund expenses, and for good reason. As the ETF world continues to expand, investors are granted hundreds of low-cost alternatives to many popular mutual funds. For example, the average equity mutual fund charges between 1.3% and 1.5%, while the average equity ETF charges just 0.57% [for more ETF news and analysis subscribe to our free newsletter]. The difference between a handful of basis points may seem miniscule within the confines of a year, but when you look at expenses over time, it is clear that ETFs have the potential to save you a lot of money. In order to get a better understanding of the concept, take a look at two hypothetical portfolios below. Portfolio Comparison Below we constructed a basic portfolio with five ETFs and one with five mutual funds; they both fill the allocations of global equities, [...] Click here to read the original article on ETFdb.com. Related Posts: 101 ETF Lessons Every Financial Advisor Should Learn Ten New Years’ Resolutions For ETF Investors ETFs For The Forgotten Asset Classes Free ETF Trading: Comparing All The Options GDX vs. GDXJ: A Better Way To Play Gold?
A lot has been made of the difference between ETF and mutual fund expenses, and for good reason. As the ETF world continues to expand, investors are granted hundreds of low-cost alternatives to many popular mutual funds. For example, the average equity mutual fund charges between 1.3% and 1.5%, while the average equity ETF charges just 0.57% [for more ETF news and analysis subscribe to our free newsletter]. The difference between a handful of basis points may seem miniscule within the confines of a year, but when you look at expenses over time, it is clear that ETFs have the potential to save you a lot of money. In order to get a better understanding of the concept, take a look at two hypothetical portfolios below. Portfolio Comparison Below we constructed a basic portfolio with five ETFs and one with five mutual funds; they both fill the allocations of global equities, [...]
Click here to read the original article on ETFdb.com.
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