Mutual funds vs ETFs

[BeeR]

General thoughts? I hear some saying bail on mutual funds altogether because ETFs have lower costs, but you could say that about mutual index funds (which, strategy wise, is basically what an ETF is)......it seems to me a lot of people are into them because it's the new cool trendy thing to be into. Not that that means they aren't a good idea, I'm just kicking the tires as to why and how much.

[Jackass]

Generally, Etf's are similar to index funds, however they can be traded throughout the day as they are priced all day long. If you're not doing a lot of buying and selling, an index fund would be the way to go. A newer trend in Etf's is to move away from strict index products and have them actively managed. So these would be similar to an actively managed mutual fund but traded throughout the day. Etf's have cheaper annual fees but you have to pay commissions when you buy and sell them.

[Brentastic]

Well, I feel like a broken record saying this, but if you want to make money this year, or more importantly, not lose money this year - you shoulnd't be buying anything that positively correlates with market movement. I own a few ETFs that move inverse of the market and they do so with a beta of -2 or -3 (2x or 3x inverse). Currently I own - FAZ, SRS, SDX and SDS.

 

All that being said, if you don't know what you're doing, or don't believe what I'm preaching, or you're just plain uncertain right now - just allocate into cash-heavy funds. Being cash heavy won't earn you the most, but you won't lose when the market tanks. If you look at all your options carefully, you can see how they allocate. Anything that is heavy on cash is ideal right now - PIMCO is looking like a good option among most 'funds' although there may be even better options available. Anything heavy on equities is not good right now. Don't trust me though, just look at what the market has done so far this year - if you think the drop is over, it's not. I only repeat myself because I care

[dmarc117]

Well, I feel like a broken record saying this, but if you want to make money this year, or more importantly, not lose money this year - you shoulnd't be buying anything that positively correlates with market movement. I own a few ETFs that move inverse of the market and they do so with a beta of -2 or -3 (2x or 3x inverse). Currently I own - FAZ, SRS, SDX and SDS.

 

All that being said, if you don't know what you're doing, or don't believe what I'm preaching, or you're just plain uncertain right now - just allocate into cash-heavy funds. Being cash heavy won't earn you the most, but you won't lose when the market tanks. If you look at all your options carefully, you can see how they allocate. Anything that is heavy on cash is ideal right now - PIMCO is looking like a good option among most 'funds' although there may be even better options available. Anything heavy on equities is not good right now. Don't trust me though, just look at what the market has done so far this year - if you think the drop is over, it's not. I only repeat myself because I care

 

 

be careful with holding the leveraged etfs for longer periods.

 

http://seekingalpha.com/article/35789-the-...-leveraged-etfs

[Jackass]

Well, I feel like a broken record saying this, but if you want to make money this year, or more importantly, not lose money this year - you shoulnd't be buying anything that positively correlates with market movement. I own a few ETFs that move inverse of the market and they do so with a beta of -2 or -3 (2x or 3x inverse). Currently I own - FAZ, SRS, SDX and SDS.

 

All that being said, if you don't know what you're doing, or don't believe what I'm preaching, or you're just plain uncertain right now - just allocate into cash-heavy funds. Being cash heavy won't earn you the most, but you won't lose when the market tanks. If you look at all your options carefully, you can see how they allocate. Anything that is heavy on cash is ideal right now - PIMCO is looking like a good option among most 'funds' although there may be even better options available. Anything heavy on equities is not good right now. Don't trust me though, just look at what the market has done so far this year - if you think the drop is over, it's not. I only repeat myself because I care

 

Dude, what is with you? He's just asking about ETF's. Nobody in this thread is asking for your view on the markets.

[Square]

Dude, what is with you? He's just asking about ETF's. Nobody in this thread is asking for your view on the markets.

Meh, didn't seem THAT off of topic (at least for what typically goes on in the Tailgate).

[Brentastic]

Dude, what is with you? He's just asking about ETF's. Nobody in this thread is asking for your view on the markets.

What is with you? With all the negativity and name-calling that goes on in various threads, why are you so focused in on my market forecasts? Am I hurting anyone with my posts or are you just that offended that my views aren't in line with what the majority is saying? I'm only trying to stress the importance of what is going on right now because I care about my fellow huddlers - I don't want to see anyone on here lose 80% of their portfolio value in the coming year(s). It's not like I'm calling people out or threatening anyone, I'm simply giving my view on something that I think is very important. Trust me, this time next year, there will be many people thanking me or wishing they would have taken my advice. So just RELAX, duuuude. If you don't agree with it, offer something legitimate to the conversastion. If you don't understand, then ask questions.

[Pope Flick]

What is with you? With all the negativity and name-calling that goes on in various threads, why are you so focused in on my market forecasts? Am I hurting anyone with my posts or are you just that offended that my views aren't in line with what the majority is saying? I'm only trying to stress the importance of what is going on right now because I care about my fellow huddlers - I don't want to see anyone on here lose 80% of their portfolio value in the coming year(s). It's not like I'm calling people out or threatening anyone, I'm simply giving my view on something that I think is very important. Trust me, this time next year, there will be many people thanking me or wishing they would have taken my advice. So just RELAX, duuuude. If you don't agree with it, offer something legitimate to the conversastion. If you don't understand, then ask questions.

 

 

You should just tell him to take a bong hit.

[Brentastic]

You should just tell him to take a bong hit.

Exactly.

[Brentastic]

be careful with holding the leveraged etfs for longer periods.

 

http://seekingalpha.com/article/35789-the-...-leveraged-etfs

Thanks for the article. I'm comfortable with what I'm holding and I understand how they work but that article has some good information in it.

[Pope Flick]

Exactly.

 

 

I was being sarcastic - I don't think many here respect your Maui Wowie Market Theory.

[Piles]

I was being sarcastic - I don't think many here respect your Maui Wowie Market Theory.

 

I don't know enough about the EWT to have an opinion one way or the othere. However, I do appreciate the thoughts of others even if they maybe contrary to what I personally think.

 

If you are long on the market in the short term and have a couple decades until retirement I personally believe in just buying index funds and other lower cost mutual funds.

 

Good luck!

Edited February 15, 2010 by Piles

[Jackass]

What is with you? With all the negativity and name-calling that goes on in various threads, why are you so focused in on my market forecasts? Am I hurting anyone with my posts or are you just that offended that my views aren't in line with what the majority is saying? I'm only trying to stress the importance of what is going on right now because I care about my fellow huddlers - I don't want to see anyone on here lose 80% of their portfolio value in the coming year(s). It's not like I'm calling people out or threatening anyone, I'm simply giving my view on something that I think is very important. Trust me, this time next year, there will be many people thanking me or wishing they would have taken my advice. So just RELAX, duuuude. If you don't agree with it, offer something legitimate to the conversastion. If you don't understand, then ask questions.

 

You're entitled to your opinion but the original posting of this thread has nothing to do with where the market is headed. You take every sliver of opportunity to repeat your opinion. We all get it by now. If you have something new to add, how about just continuing one of the posts that's already out there.

[Brentastic]

You're entitled to your opinion but the original posting of this thread has nothing to do with where the market is headed. You take every sliver of opportunity to repeat your opinion. We all get it by now. If you have something new to add, how about just continuing one of the posts that's already out there.

Nah, I will add whatever I feel is relevant to any thread I see fit. You are the only one who seemed upset by my harmless post. I did discuss the subject in the original post and I'm not going abide by your wishes. Your post in this thread is much further off topic than mine - perhaps you should follow your own advice.

[Brentastic]

I was being sarcastic - I don't think many here respect your Maui Wowie Market Theory.

Thank you captain obvious. I don't even smoke pot, so I'm not sure what you're refering to.

[Jackass]

Nah, I will add whatever I feel is relevant to any thread I see fit. You are the only one who seemed upset by my harmless post. I did discuss the subject in the original post and I'm not going abide by your wishes. Your post in this thread is much further off topic than mine - perhaps you should follow your own advice.

 

We can all see that.

[muck]

General thoughts? I hear some saying bail on mutual funds altogether because ETFs have lower costs, but you could say that about mutual index funds (which, strategy wise, is basically what an ETF is)......it seems to me a lot of people are into them because it's the new cool trendy thing to be into. Not that that means they aren't a good idea, I'm just kicking the tires as to why and how much.

 

1) Either type of investment can be good, depending on what you're trying to accomplish.

 

2) Personally, I prefer to be either in cash or invested with someone who I think has an "edge" on investing in a particular type of asset, rather than having some sort of general, nebulous exposure to "the market". Some people think of this as market timing. But, what many of those people don't understand is that ALL investing is market timing (including "dollar cost averaging").

 

3) Read the fine print (especially if you're looking at leveraged ETFs or leveraged mutual funds).

 

4) All investments can lose you crazy amounts of money; don't let anyone tell you differently.

[BeeR]

Muck thx, although even a dumbass like me knew all that. PS/for the record to all: , I'm very much open to general investment talk but was really aiming to get info on ETFs vs mutual funds, ie the inherent diffs, as my impression is they are overblown, esp given how ETFs are changing or "evolving."

[dmarc117]

Muck thx, although even a dumbass like me knew all that. PS/for the record to all: , I'm very much open to general investment talk but was really aiming to get info on ETFs vs mutual funds, ie the inherent diffs, as my impression is they are overblown, esp given how ETFs are changing or "evolving."

 

 

ive even read some people making up there own 'etfs'. look at an etf that you like, see what stocks in there are good ones, and which ones are the bums. then allocate those good stocks into your portfolio.