Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 02-02-2007, 04:25 PM   #1
Confused about dryer sheets
Join Date: Jan 2007
Posts: 9

Hello I have been getting a lot of good advice here lately. Now just when I think I am getting somewhere then i read too much and get new ideas. My new idea is would I be better off using ETF's instead of mutual funds? Things I have been reading say less fees and more tax efficient. I understand that for my IRA account the tax advantage would not matter. By doing this it would save me some fees from moving my accounts to Vanguard which is what I was thinking of doing. Currently most of my savings and IRA's are at TDAmeritrade. Maybe I need to quit reading and just do something? Any advice is appreciated. Thanks. Also what group of ETF's are the best?

kraftdda is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-02-2007, 04:38 PM   #2
Full time employment: Posting here.
Join Date: Oct 2003
Posts: 961

Q: My new idea is would I be better off using ETF's instead of mutual funds?

Answer: That depends. Seriously, though, I assume you're only talking about the taxable account here. The large cap domestic and foreign index funds [like from Vanguard] are very tax efficient, like the ETF's. I think ETF's have an advantage in small caps, especially small cap value.

The expense ratios for the Vanguard index funds are usually equal to or just above comparable ETF's, but the index funds require no transaction fees if bought directly from Vanguard. If you're going to keep everything at TDAmeritrade, buying/selling the ETF's might have less in transaction fees than buying Vanguard index funds through TDAmeritrade.

Q:Also what group of ETF's are the best?

The cheaper and more tax efficient the better. I think Vanguard's VIPERs are undercutting a lot of the iShares ETFs in expense ratio. The difference in portfolio composition between something like a total stock market ETF or a value ETF from iShares vs. VIPERS isn't going to be all that different, so I'd compare fees.

You should check out Vanguard's page on ETF's vs. Mutual funds.

Also, before you start looking at which ETF's or Mutual Funds to buy, have you thought about what asset classes you want to include/exclude? For example, domestic vs. foreign stocks, large stocks vs. small stocks, value vs. growth, stocks vs. bonds, etc. After you decide these breakdowns, it become soooo much easier to choose ETF's or funds.

- Alec
ats5g is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Mutual Fund to ETF/ Index mapping website ? Delawaredave FIRE and Money 23 11-26-2008 08:39 PM
International REIT ETF? JustCurious FIRE and Money 5 12-30-2006 10:46 AM
MOST DIVERSE ETF MIX mathjak107 FIRE and Money 2 05-16-2006 10:35 PM
Emerging Mkts Fund - should I switch to ETF? kaudrey FIRE and Money 2 03-20-2006 08:57 AM
ETF questions: international & microcaps Nords FIRE and Money 9 08-18-2005 07:24 PM

» Quick Links

All times are GMT -6. The time now is 11:32 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.