Author Topic: ETF ve murual fund  (Read 1246 times)

Rasputin

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ETF ve murual fund
« on: December 06, 2018, 04:56:52 PM »
Could one of you kind souls explain the difference to me between these two items and the pros and cons of each or point me in he direction of such information? My interest is in long term holdings for my IRA.

jacoavluha

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Re: ETF ve murual fund
« Reply #1 on: December 06, 2018, 07:41:58 PM »


MustacheAndaHalf

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Re: ETF ve murual fund
« Reply #3 on: December 06, 2018, 08:34:43 PM »
I don't like reinvesting dividends - I want to use the cash to buy whatever lags behind in my portfolio.  If you like reinvesting dividends, mutual funds allow that but ETFs don't.

Mutual funds tend to be expensive if you buy outside your current brokerage.  If you're at Vanguard, you might have to pay a fee to buy Fidelity mutual funds.  With ETFs, they trade on the open market like stocks, so they tend to be cheaper to buy than other brokeage's mutual funds.  Also, most brokerage have a family of ETFs they let you buy/sell for $0/trade.

If you want to move from one asset to another, ETFs are faster: you sell one ETF, and gain a credit.  You immediately use that credit to buy another ETF.  (With mutual funds you wait for the cash to settle, then buy another mutual fund).  Your cash spends seconds in cash rather than a day (longer if you forget to buy a fund the next day).

But the key thing is to invest, not delay while deciding between ETFs and mutual funds.  If you mostly want to buy mutual funds, ignore my biased view (I like ETFs) and go with mutual funds.  Starting is more important than a perfect decision.
 Even a bad mutual fund beats cash.

flipboard

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Re: ETF ve murual fund
« Reply #4 on: December 06, 2018, 11:32:28 PM »
I don't like reinvesting dividends - I want to use the cash to buy whatever lags behind in my portfolio.  If you like reinvesting dividends, mutual funds allow that but ETFs don't.
That is incorrect. You can reinvest dividends with EFT's - assuming your broker has implemented that - and most do. (Due to the unit size issues you may not be able to reinvest the entire dividend, but that's a different issue.)

mrmoonymartian

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Re: ETF ve murual fund
« Reply #5 on: December 07, 2018, 12:01:20 AM »
The writing is on the wall for mural funds.

Rasputin

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Re: ETF ve murual fund
« Reply #6 on: December 07, 2018, 03:38:30 AM »
The writing is on the wall for mural funds.

What do you mean?

Freedomin5

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Re: ETF ve murual fund
« Reply #7 on: December 07, 2018, 04:44:48 AM »
@mrmoonymartian is teasing you because of your typo. You wrote “murual” (mural) funds instead of mutual funds. A mural is a giant picture/painting that uses a wall as the canvas.

Rasputin

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Re: ETF ve murual fund
« Reply #8 on: December 07, 2018, 05:11:49 AM »
@mrmoonymartian is teasing you because of your typo. You wrote “murual” (mural) funds instead of mutual funds. A mural is a giant picture/painting that uses a wall as the canvas.

Should I beat him unmerciful?

mrmoonymartian

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Re: ETF ve murual fund
« Reply #9 on: December 07, 2018, 05:16:18 AM »
You can take my advice to the Banksy.

MustacheAndaHalf

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Re: ETF ve murual fund
« Reply #10 on: December 07, 2018, 09:22:13 AM »
I don't like reinvesting dividends - I want to use the cash to buy whatever lags behind in my portfolio.  If you like reinvesting dividends, mutual funds allow that but ETFs don't.
That is incorrect. You can reinvest dividends with EFT's - assuming your broker has implemented that - and most do. (Due to the unit size issues you may not be able to reinvest the entire dividend, but that's a different issue.)
I stand corrected - for example Vanguard let's you reinvest ETF dividends.

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Re: ETF ve murual fund
« Reply #11 on: December 07, 2018, 11:19:06 AM »
One major advantage of ETF's: they're much more portable than funds. Which makes it easy to switch brokers if needed (or if worthwhile: some brokers give bonuses for switching) - the alternative being selling the fund, sending money, and rebuying (and being out of the market for that time).

 If you happen live in a country with capital gains taxes, then ETF's are pretty much essential if you ever want to switch brokers to avoid being blocked by a non-movable fund.

Rasputin

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Re: ETF ve murual fund
« Reply #12 on: December 07, 2018, 02:19:23 PM »
One major advantage of ETF's: they're much more portable than funds. Which makes it easy to switch brokers if needed (or if worthwhile: some brokers give bonuses for switching) - the alternative being selling the fund, sending money, and rebuying (and being out of the market for that time).

 If you happen live in a country with capital gains taxes, then ETF's are pretty much essential if you ever want to switch brokers to avoid being blocked by a non-movable fund.

My roth is with TD but I’m gonna call Vanguard and see if I can switch to them because I only own their funds.