ETF vs Index Funds

[engineernerd]

Quote:

Originally Posted by OldShooter If your limit order strategies work for you that's great. I think it is the case, though, that on a wild day all ETFs' price action will be highly correlated.

Not sure I agree, but even so, worst case is I either find a non-ETF source of funds or go without for a few days until the mess is sorted out. I'm not at risk of finding out after the fact that I sold my holdings during a major and completely unjustified price dip.

[temartin]

Quote:

Originally Posted by mrfeh Pros and cons to this...with ETF you need to be aware of the bid/ask spread, unless you are willing to place a market order.

That's true, but with a mutual fund, you don't know the price when you place the buy/sell order either. they are priced after market close.

[MRG]

Quote:

Originally Posted by audreyh1 I tend to rebalance in the first trading day or two of January, and that particular time of year is generally positive for equities and negative for bonds unless we are coming off a bear market year. This is just fine with me as I’m most often trimming from equities and adding to bonds when I rebalance, unless we are coming off a bear market year. Regardless, the daily moves are just noise especially if you look back a year later.

Exactly. IMHO it only makes a difference in a taxable account buying non-Vangaurd mutual funds.