Making the Switch From Mutual Funds to ETFs

Lydon, Tom
June 2009
Journal of Financial Planning;Jun2009 Trends in Investing, p11
Academic Journal
The article presents a comparison between exchange traded funds (ETFs) and mutual funds. Being relatively new in the investment market, ETFs emerged at a time when mutual funds were performing well, despite the bear market. Mutual funds are expensive and, in recent years, have failed to show expected viability. Mutual funds companies are not expecting changing plans irrespective of market or economic fluctuations. ETFs, on the other hand, presented more advantages including asset class options, cheapness, flexibility, and tax-efficiency. With the evident features, it comes as no surprise that in financial planning, advisers are considering switching to ETFs.


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