ej401
Initiate Member
Joined: May 4, 2013 11:36:51 GMT -5
Posts: 58 
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Post by ej401 on Sept 13, 2013 22:04:24 GMT -5
ETF vs Mutual Fund - Differences? Pros and cons?
Example: BND vs. VBMFX
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The Virginian
Senior Member
"Formal education makes you a living, self education makes you a fortune."
Joined: Dec 20, 2010 18:05:58 GMT -5
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Today's Mood: Cautiously Optimistic
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Post by The Virginian on Sept 14, 2013 6:50:03 GMT -5
ETF's are not usually "Actively Managed" - That is they usually invest in a fixed block of Stocks.
As a result their fees are much lower than Mutual Funds.
They Trade like Stocks.
They are good for people that want to invest in a particular area but either don't have the means to buy a bunch of stocks or ; are unwilling to try and figure out which stocks to purchase. I use a couple to help add saftey to my portfolio. For example I have mostly Dividend Stocks in my Portfolio but only about 30 - I use the Schwab SCHD ETF because it has about 100 Stocks in it which gives me exposure to Dividend Stocks that I couldn't possibly own individually and helps spread my risk out.
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vonna
Well-Known Member
Joined: Aug 11, 2012 15:58:51 GMT -5
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Post by vonna on Sept 14, 2013 8:31:08 GMT -5
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Ombud
Junior Associate
Joined: Jan 14, 2013 23:21:04 GMT -5
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Post by Ombud on Sept 14, 2013 23:28:47 GMT -5
In my 'core' portfolio I invest in ETFs instead of mutual funds bc I can have puts or stops on them. Can't do that with a mutual fund
In the explore portion of my portfolio, I buy individual stocks & bonds.
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ej401
Initiate Member
Joined: May 4, 2013 11:36:51 GMT -5
Posts: 58
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Post by ej401 on Sept 16, 2013 21:30:19 GMT -5
Thanks everyone!
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