My 401k is with Schwab. Within that, I have access to PCRA - I can trade stocks, ETFs (Schwab ETFs are commission free), and variety of index and mutual funds. Which one of these is a better option:
Option 1:
SWTSX with ER of .09
Option 2:
ETF SCHB with ER of .04
ETF has better ER, but I'm concerned about buy-sell spread. Moreover, as dividends are reinvested, they are always reinvested at 'buy' price. I don't know what is the long term impact of holding ETFs. Just looking at face-value, expense ratios on ETFs look way better than expense ratios on Schwab funds. How can I compare the two and make sound judgement.