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ETFs Vs. Mutual Funds: Why ETFs Are Cheaper

By: ETFdb
ETFs have found their way into countless portfolios over the years thanks to the efficiency of the exchange-traded product structure; day traders have embraced these funds for their unparalleled liquidity and precision, while investors have taken advantage of the low-cost and diversification features. While there’s more than a handful of reasons why ETFs are better than mutual funds, at the heart of the matter lies one straightforward advantage, and that’s cost [see The Cheapest ETF for Every Investment Objective]. There is a plethora of good reasons that a lot of noise has been made about the cost difference between mutual funds and ETFs. At ETF Database, we’ve certainly emphasized the cost advantage of ETFs over mutual funds, especially over a long-term investment horizon, and we’re certainly not alone when it comes to preaching the benefits of lower fund management fees. Many people must initially wonder why; that is to say, why are ETFs cheaper than […] Click here to read the original article on ETFdb.com. Related Posts: 5 Questions to Ask When Buying a Technology ETF IPO ETFs (FPX, IPO): A Better Way To Ride The Bull Thursday’s ETF Chart To Watch: TLT Rebound In Focus After Weekly Jobs Data What an Apple/China Mobile Deal Would Mean for ETFs 25 Wild ETF Charts From 1H 2013
ETFs have found their way into countless portfolios over the years thanks to the efficiency of the exchange-traded product structure; day traders have embraced these funds for their unparalleled liquidity and precision, while investors have taken advantage of the low-cost and diversification features. While there’s more than a handful of reasons why ETFs are better than mutual funds, at the heart of the matter lies one straightforward advantage, and that’s cost [see The Cheapest ETF for Every Investment Objective].  There is a plethora of good reasons that a lot of noise has been made about the cost difference between mutual funds and ETFs. At ETF Database, we’ve certainly emphasized the cost advantage of ETFs over mutual funds, especially over a long-term investment horizon, and we’re certainly not alone when it comes to preaching the benefits of lower fund management fees. Many people must initially wonder why; that is to say, why are ETFs cheaper than […]

Click here to read the original article on ETFdb.com.

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