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one would think you want to compare after tax performance of the etf vs the mutual fund you are looking at. assuming they have similar risk.
I would think the one main disadvantage is when you sell mf, if there was any appreciation, the sale will result in you paying capital gains on the sale to buy something else.
vanguard has a comparison feature on their site.
the general advantage of etf's you can buy and sell them make frequent reading without penalties.
Ask yourself - why did you buy Vanguard Dividend Growth (VDIGX) instead of Vanguard Dividend Appreciation (VDAIX)? Has anything changed - why would you prefer the latter fund now to the former?
That's the primary issue - which fund do you want? Only after answering that (or saying it's a toss up), should one go about thinking whether the way a fund is purchased makes a difference.
VDAIX (Investor shares), VDADX (Admiral shares), VIG (ETF shares) - these are all just different classes of the same fund. The latter two have the same ER; the former two have the same method of purchase (at NAV at end of day, vs. during the day with a bid/ask spread and possibly commission).
No commissions, lower expenses, buy and sell at YOUR price....I can think of no other benefits to ETF s over Mutual Funds ....but give me a few minutes
Comments
one would think you want to compare after tax performance of the etf vs the mutual fund you are looking at. assuming they have similar risk.
I would think the one main disadvantage is when you sell mf, if there was any appreciation, the sale will result in you paying capital gains on the sale to buy something else.
vanguard has a comparison feature on their site.
the general advantage of etf's you can buy and sell them make frequent reading without penalties.
That's the primary issue - which fund do you want? Only after answering that (or saying it's a toss up), should one go about thinking whether the way a fund is purchased makes a difference.
VDAIX (Investor shares), VDADX (Admiral shares), VIG (ETF shares) - these are all just different classes of the same fund. The latter two have the same ER; the former two have the same method of purchase (at NAV at end of day, vs. during the day with a bid/ask spread and possibly commission).
Place a limit order and you may not buy and sell at all, let alone at your price. Place a market order and you'll lose on the bid/ask spread.
Then there's tracking error - to the underlying portfolio's tracking error the ETF adds premium/discount (small but nonzero).