"vijay george" <vijay.george[at]gmail.com> wrote in message
news:1142623493.458289.92590[at]j52g2000cwj.googlegroups.com...
- quote -

With minimal trading that probably is insignificant. If you're investing
small amounts regularly, the minimums could add up.
--
Chris Cowles
Gainesville, FL

"Bucky" <uw_badgers[at]email.com> wrote in message
news:1142405040.730646.67830[at]i39g2000cwa.googlegroups.com...
- quote -

That's adequate and succinct. Thanks.
--
Chris Cowles
Gainesville, FL

"Bucky" <uw_badgers[at]email.com> wrote in message
news:1142405040.730646.67830[at]i39g2000cwa.googlegroups.com...
- quote -

With your prompt I also found
http://news.morningstar.com/article/....asp?id=157760

Thanks

<screenaccount[at]gmail.com> wrote in message
news:1142654437.363164.100830[at]u72g2000cwu.googlegroups.com...
- quote -

Buying index funds monthly probably would be cheaper than paying commissions
on ETFs. You'll have to do the math. If your broker is the one handling the
routine transactions (i.e., drafting money out of a checking account, or
something like that) watch out for 12b1 fees.

Parking money to accrue it, then making larger purchases, may be cheaper
from a commission perspective. Losing out on potential gains on the
investment while your funds sit in a cash account could be a significant
expense.
--
Chris Cowles
Gainesville, FL

Is there a benefit to buying ETFs in big chunks vs. buying Index funds
monthly? I'm attempting to do the averaging thing by sticking money
into an IRA twice a month or so, but might it be more cost effective to
go with ETFs instead, and just make payments maybe twice a year or so?

Thanks,
Mike


vijay george wrote:
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a typical ETF will have an expense ratio that is significantly lower
than a passive fund tracking the same index. for example, look at any
vanguard index fund compared to the corresponding VIPER (which are
vanguard managed ETF's). the VIPER expense ratios are even lower than
the expense ratio for admiral class index funds. but you do have to pay
transaction fees with ETF's - which you generally don't for a passive
index fund.

so it goes back to what the first responder said - if you are making
monthly contributions then go with the index fund, if you're buying
large chunks with large intervals in between purchases then go with the
ETF.

the_sarp[at]yahoo.com writes:

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How is that any different from an "regular" index mutual fund?

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So do, say, Vanguard's index mutual funds.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

Chris Cowles wrote:
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I am reading "The Secret Code of the Superior Investor," by James K.
Glassman.

In it he says that the advantage of the ETF index fund like Spiders
(that tracks the S&P) is that such funds are run by computer which
greatly reduces their overall costs.

Managed funds can cost up to 2% in total costs, even if they are
no-load, which can really add up over the long term.

Glassman says ETF indexes might only cost one fifth of a percent in
total costs. The S&P averages 11% growth per year including dividends.

the sarp

Chris Cowles wrote:
- quote -

I just read an article about that today:
http://news.morningstar.com/article/...&pgid=wwhome1a

I think they're pretty much the same as far as tax implications go in a
tax-protected retirement account. So then it just comes down to trading
commissions vs expense ratios. ETFs generally have trading commissions
but lower expense ratios. So just take your typical behavior and see
which one would cost you less. If you purchase in small quantities or
rebalance frequently, then go with index mutual funds. Otherwise, go
with ETFs.

Can someone explain briefly, or direct me to a useful site, the
dis/advantages of ETFs vs. index mutual funds in a tax-protected retirement
account?

My investment strategy basically follows that described on
http://www.seninvest.com/estabearner.htm, for portfolios > $100K. I don't
need to adjust often because regular contributions go into the funds
required to keep it balanced.

Thanks in advance for any advice.
--
Chris Cowles
Gainesville, FL