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Originally Posted by Cut-Throat
So it's basically the expense of the mutual fund that is the difference? Correct?
I am holding the Admiral Fund of TIPS and its expense is .11% - So it's about 1/10 of a percent a year?
That may be worth it to me for the liquidity.
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The expense ratio and "alpha" would be the big difference.* "Alpha" is the value the fund manager destroys creates through his positioning of the portfolio.* Trades employed by the manager in creating "alpha" may also create taxable gains, which wouldn't be owed in a pure buy and hold account.
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