ETFs or Mutual Funds for an inexperienced investor

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dia
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ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sat Jun 24, 2017 12:48 pm

I have prior 401k money sitting in an account waiting to be invested. I started studying about ETFs and would like to invest, however, don't have much opportunity during the day to do the trades. I read (probably on this forum) that you should never use Market orders. The first time I bought ETFs, I didn't realize this and bought with Market orders--so far no major damage as I didn't buy anything too risky and the account has headed in the right direction. I tried another trade as a Limit order, looked at the bid-ask spread, and came up with a number -- trade never happened (as I suspected would happen). I really didn't know what I was doing. Again, I have limited time during trading hours, but can make time, i.e., lunch hours, etc.

I like the lower fees with ETFs but since I am not available constantly during trading hours to really do this right--does it make more sense for me to buy mutual funds and forget about ETFs? I do not want to use an advisor, I want to learn to do this myself. I am relatively smart, interested, and willing to learn and participate.

Suggestions/tips welcome.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by alex_686 » Sat Jun 24, 2017 1:02 pm

The chance that a market order will go wrong due to a flash crash is less than a million to one. I would not worry about it. I use market orders all of the time.

Passive index fund - either mutual funds or ETFs have about the same expense ratio so I feel we would be splitting hairs here.

Since you are putting orders in during the middle of the day I suspect that you have a taxable account. ETFs are more tax efficient than comparable mutual funds so I would go the ETF route.

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by grabiner » Sat Jun 24, 2017 1:45 pm

alex_686 wrote:Passive index fund - either mutual funds or ETFs have about the same expense ratio so I feel we would be splitting hairs here.
In particular, Vanguard's ETFs have the same cost as Admiral shares of their index funds, because they are two share classes of the same fund.
Since you are putting orders in during the middle of the day I suspect that you have a taxable account. ETFs are more tax efficient than comparable mutual funds so I would go the ETF route.
This does not apply to Vanguard funds; since the mutual fund and ETF are share classes of the same fund, they have the same tax costs, and both are tax-efficient unless they cover a tax-inefficient asset class such as REITs.

Therefore, if you don't understand how ETFs work, or can't conveniently trade them, it makes sense to use Vanguard's mutual funds in a taxable account, or any provider's low-cost mutual funds in an IRA (Fidelity and Schwab, for example, offer index funds with costs comparable to Vanguard's).
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sat Jun 24, 2017 2:24 pm

I should have mentioned I am working with IRA money.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by sport » Sat Jun 24, 2017 2:33 pm

For an inexperienced investor, mutual funds are much easier than ETFs. There are no bids, asks, spreads, limits, etc. You just decide how much you want to buy, right to the penny. You make your purchase and you get the asset price at the end of the day. Selling is equally simple. If you want Vanguard funds and have an account at Vanguard, there is no need for ETFs. I have been investing in mutual funds successfully since 1971. ETFs serve no purpose for me.

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by pkcrafter » Sat Jun 24, 2017 2:42 pm

Welcome dia,

I will assume you want to invest and not trade. How much do you have in the IRA and where is it? Is it in cash?



Paul
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sat Jun 24, 2017 3:02 pm

sport wrote:For an inexperienced investor, mutual funds are much easier than ETFs. There are no bids, asks, spreads, limits, etc. You just decide how much you want to buy, right to the penny. You make your purchase and you get the asset price at the end of the day. Selling is equally simple. If you want Vanguard funds and have an account at Vanguard, there is no need for ETFs. I have been investing in mutual funds successfully since 1971. ETFs serve no purpose for me.
I am leaning in this direction. I am very familiar with mutual funds but hearing all the hype about ETFs made me think I was missing out on something bigger, better and less expensive. I am interested in the investing process, so I tried ETFs and think I will just be content with that experience and learning opportunity but will move forward with mutual funds for the remaining $$$ from my 401k's. The remaining money is relaxing comfortably in the Vanguard settlement fund waiting for my direction (or for the market to go down a bit). Or both.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sat Jun 24, 2017 3:05 pm

pkcrafter wrote:Welcome dia,

I will assume you want to invest and not trade. How much do you have in the IRA and where is it? Is it in cash?



Paul
Yep in cash waiting for marching orders. I am thinking it's better to invest periodically instead of all at once which is the path I am taking.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by iceport » Sat Jun 24, 2017 3:10 pm

sport wrote:For an inexperienced investor, mutual funds are much easier than ETFs. There are no bids, asks, spreads, limits, etc. You just decide how much you want to buy, right to the penny. You make your purchase and you get the asset price at the end of the day. Selling is equally simple. If you want Vanguard funds and have an account at Vanguard, there is no need for ETFs. I have been investing in mutual funds successfully since 1971. ETFs serve no purpose for me.
I agree with you completely, except for one point: the advantages you note have nothing whatsoever to do with experience level. The experienced and inexperienced alike enjoy all the benefits of mutual funds you noted. I especially like the ease of re-balancing with mutual funds. Re-balancing with ETFs can be a long, drawn out, tedious process.

Like the OP, before I retired I had no access to online trading accounts. ETFs are a tremendous disadvantage in that circumstance.
"Discipline matters more than allocation.” ─William Bernstein

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by pkcrafter » Sat Jun 24, 2017 8:14 pm

dia, where is the account located and approximate amount?

Paul
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by epictetus » Sat Jun 24, 2017 8:18 pm

i would encourage you to use mutual funds and not worry with the ETFs. that is what i do and find it much simpler
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by stlutz » Sat Jun 24, 2017 8:25 pm

If you are trading highly liquid ETFs like VTI, VXUS, and BND, market orders work just fine 99.99999% of the time.

For any other ETF, I use a "marketable limit order". That is, I'll place an order at the ask and just let my broker execute it. Generally I get a better price than the ask.

If it seems more complicated than this, then you're spending too much time on the internet. :happy

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sat Jun 24, 2017 9:28 pm

stlutz wrote:If you are trading highly liquid ETFs like VTI, VXUS, and BND, market orders work just fine 99.99999% of the time.

For any other ETF, I use a "marketable limit order". That is, I'll place an order at the ask and just let my broker execute it. Generally I get a better price than the ask.

If it seems more complicated than this, then you're spending too much time on the internet. :happy
It does seem more complex. I tend to look after trading hours to try and familiarize and educate myself, so the asking prices seem way high. How do you come up with your asking price? If something is currently at $125, but the asking price is something like $140. What to do?
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by livesoft » Sat Jun 24, 2017 9:53 pm

dia wrote:It does seem more complex. I tend to look after trading hours to try and familiarize and educate myself, so the asking prices seem way high. How do you come up with your asking price? If something is currently at $125, but the asking price is something like $140. What to do?
But when you look at a mutual fund quote this weekend what do you see? How do you know what price you will get on Monday?
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by Watty » Sat Jun 24, 2017 10:02 pm

epictetus wrote:i would encourage you to use mutual funds and not worry with the ETFs. that is what i do and find it much simpler
+1

I retired recently and one of the things I did was to try to simplify my portfolio to make it easier to manage when I am older or if my less knowledgeable wife has to manage it some day.

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by stlutz » Sat Jun 24, 2017 10:48 pm

It does seem more complex. I tend to look after trading hours to try and familiarize and educate myself, so the asking prices seem way high. How do you come up with your asking price? If something is currently at $125, but the asking price is something like $140. What to do?
Don't place trades on Saturday night. :wink:

Here is what I do. I decide sometime that I want to buy, say, $5000 of SCHR (Schwab Intermediate Term Treasury ETF). When I get a free moment during trading hours, I will login to my account and confirm what the price is. During trading hours I would typically see something like of a bid of $54.28 and an ask of $54.31 on that ETF.

I'll take 5000/54.31 = 92.6. Since I prefer round numbers I'll just round down and place an order for 90 shares with a limit of 54.31. The order will execute at that price or (most commonly) better--say $54.30. I then logoff and go back to what I was otherwise doing at work.

The whole process (including logging on ) takes < 3 minutes.

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by stlutz » Sat Jun 24, 2017 10:48 pm

We should ask--what ETFs do you own are are you considering purchasing?

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sun Jun 25, 2017 6:59 am

stlutz wrote:We should ask--what ETFs do you own are are you considering purchasing?
I have an IRA account at Schwab, with $$ not invested yet.Trying to figure it out.

I have an IRA account at Vanguard and own:
VNQI
VNQ
VONV
VOO
VIOV
VIOO
Still figuring out where to put other old 401k funds--will most likely do some bonds, but I also may consider CDs, for less risk, equally low returns, but safer if stocks fall off the cliff. I'm in my mid-50s, working and funding a 401k at the max amount possible, including the "catch up" amount. Some of you will probably say I should hire an advisor--really don't want to do that. I've been there a few times--never impressed with their level of time/attention. All kinds of attention when you sit in front of them for the first time, once they have your account invested--it sits, it sits, it sits, which is what it's supposed to do if invested correctly I guess--but I CAN DO THAT. Figure out a mix and go for it. Right?

Some thoughts on XAR ? At the moment on the weekend: Bid 66.89, Ask 73.96, but being the weekend I know it needs to be looked at while live.
Thanks for all the input.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sun Jun 25, 2017 7:11 am

stlutz wrote:
It does seem more complex. I tend to look after trading hours to try and familiarize and educate myself, so the asking prices seem way high. How do you come up with your asking price? If something is currently at $125, but the asking price is something like $140. What to do?
Don't place trades on Saturday night. :wink:

Here is what I do. I decide sometime that I want to buy, say, $5000 of SCHR (Schwab Intermediate Term Treasury ETF). When I get a free moment during trading hours, I will login to my account and confirm what the price is. During trading hours I would typically see something like of a bid of $54.28 and an ask of $54.31 on that ETF.

I'll take 5000/54.31 = 92.6. Since I prefer round numbers I'll just round down and place an order for 90 shares with a limit of 54.31. The order will execute at that price or (most commonly) better--say $54.30. I then logoff and go back to what I was otherwise doing at work.

The whole process (including logging on ) takes < 3 minutes.
This looks like a sane process and what happened when I did "market" orders, but at that time I didn't know you weren't supposed to buy Market. After that relatively easy buy, I came across Bogleheads and read somewhere to never use Market orders, so the next time, I tried to do Limit orders and the one transaction I tried wasn't successful--then the confusion began and I stopped. Is the objective to look for funds where bid/ask are very close? What if they are not? If they are not and you still want the fund, do you then buy the mutual fund version? I still don't understand when you say you received a better price than your limit order price--(although not much), how does that happen? Maybe if I understood better what's happening mechanically out there in the insane and horrid trading sphere I could better navigate through my part of it. Thanks for your patience as I try to make sense of all this nonsense. The good news--I find it interesting and challenging and look forward to taking a more active role in it.
What, Me Worry? --Alfred E. Neuman

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by lazydavid » Sun Jun 25, 2017 7:18 am

dia wrote:I have an IRA account at Schwab, with $$ not invested yet.Trying to figure it out.
Schwab's core index Mutual Funds are crazy cheap, with $1 minimums. I have my 9-year-old in SWPPX (S&P 500), with an ER of 0.03%. They have other similarly cheap core funds to fill out whatever basic portfolio your IPS would call for.

https://www.schwab.com/public/schwab/nn ... funds.html

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sun Jun 25, 2017 7:30 am

lazydavid wrote:
dia wrote:I have an IRA account at Schwab, with $$ not invested yet.Trying to figure it out.
Schwab's core index Mutual Funds are crazy cheap, with $1 minimums. I have my 9-year-old in SWPPX (S&P 500), with an ER of 0.03%. They have other similarly cheap core funds to fill out whatever basic portfolio your IPS would call for.

https://www.schwab.com/public/schwab/nn ... funds.html
Thank you... It's a no brainer isn't it.

Teach your son all of this stuff as soon as he's able to grasp it. It helps not to feel so intimated by investing like so many adults are. I'm thankful for forums like this-- because no ONE in my family or circle of friends can offer any help or advice. They stay as far away from it as possible and are not even interested to learn more. Crazy.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by grabiner » Sun Jun 25, 2017 8:56 am

lazydavid wrote:
dia wrote:I have an IRA account at Schwab, with $$ not invested yet.Trying to figure it out.
Schwab's core index Mutual Funds are crazy cheap, with $1 minimums. I have my 9-year-old in SWPPX (S&P 500), with an ER of 0.03%. They have other similarly cheap core funds to fill out whatever basic portfolio your IPS would call for.

https://www.schwab.com/public/schwab/nn ... funds.html
Watch out for distributions, unless you hold these funds in an IRA. Most of Schwab's index funds have distributed significant capital gains in recent years, leading to a higher tax cost. This includes the total stock market index, and the Schwab 1000 (large-cap) index; even the 500 index has distributed a small amount in capital gains. In a taxable account, it is better to use the ETFs if you invest with Schwab.

This isn't as much of an issue for your 9-year-old, as a child can earn $2100 in qualified dividends and capital gains without owing any tax.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by SpringMan » Sun Jun 25, 2017 9:33 am

I strongly prefer mutual funds. Not because I am an inexperienced investor but for other reasons. One being you can't buy an exact dollar amount of an ETF, you must buy an integer amount. Another is mutual funds with dividends reinvested show up the following day, T+1, and ETFs don't T+3. I own VSS because at the time the mutual fund version had a purchase fee, VSS dividend seems to take much longer to show up. What makes matters worse is Vanguard does not show any pending transactions for this VSS dividend. IMO anyone that says they like ETFs better because they can get in or out anytime during the day is kidding themselves because Mr Market can go either way.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by triceratop » Sun Jun 25, 2017 9:40 am

SpringMan wrote:I strongly prefer mutual funds. Not because I am an inexperienced investor but for other reasons. One being you can't buy an exact dollar amount of an ETF, you must buy an integer amount. Another is mutual funds with dividends reinvested show up the following day, T+1, and ETFs don't T+3. I own VSS because at the time the mutual fund version had a purchase fee, VSS dividend seems to take much longer to show up. What makes matters worse is Vanguard does not show any pending transactions for this VSS dividend. IMO anyone that says they like ETFs better because they can get in or out anytime during the day is kidding themselves because Mr Market can go either way.
"I like ETFs better because I can get in or out any time during the day." I have found that useful for tax gain harvesting into the same fund. With a mutual fund that only trades once a day this is impossible. I do not think I am kidding myself.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by SpringMan » Sun Jun 25, 2017 10:50 am

triceratop wrote:
SpringMan wrote:I strongly prefer mutual funds. Not because I am an inexperienced investor but for other reasons. One being you can't buy an exact dollar amount of an ETF, you must buy an integer amount. Another is mutual funds with dividends reinvested show up the following day, T+1, and ETFs don't T+3. I own VSS because at the time the mutual fund version had a purchase fee, VSS dividend seems to take much longer to show up. What makes matters worse is Vanguard does not show any pending transactions for this VSS dividend. IMO anyone that says they like ETFs better because they can get in or out anytime during the day is kidding themselves because Mr Market can go either way.
"I like ETFs better because I can get in or out any time during the day." I have found that useful for tax gain harvesting into the same fund. With a mutual fund that only trades once a day this is impossible. I do not think I am kidding myself.
Just my opinion, I did not mean to offend anyone. My point was markets do often swing one way or the other before closing so investing during the day may or may not work out favorably.
Best Wishes, SpringMan

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by triceratop » Sun Jun 25, 2017 11:12 am

SpringMan wrote:
triceratop wrote:
SpringMan wrote:I strongly prefer mutual funds. Not because I am an inexperienced investor but for other reasons. One being you can't buy an exact dollar amount of an ETF, you must buy an integer amount. Another is mutual funds with dividends reinvested show up the following day, T+1, and ETFs don't T+3. I own VSS because at the time the mutual fund version had a purchase fee, VSS dividend seems to take much longer to show up. What makes matters worse is Vanguard does not show any pending transactions for this VSS dividend. IMO anyone that says they like ETFs better because they can get in or out anytime during the day is kidding themselves because Mr Market can go either way.
"I like ETFs better because I can get in or out any time during the day." I have found that useful for tax gain harvesting into the same fund. With a mutual fund that only trades once a day this is impossible. I do not think I am kidding myself.
Just my opinion, I did not mean to offend anyone. My point was markets do often swing one way or the other before closing so investing during the day may or may not work out favorably.
No offense taken! I just wanted to point out there are advantages to being able to buy/sell intraday. Of course, frequent trading during the day is unwise since short-term market movements are random and unpredictable. However, investing during the day will work out just fine; the same market movements that are happening to your Vanguard ETFs happen to your mutual funds, only obscured by the once-a-day price.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by stlutz » Sun Jun 25, 2017 1:19 pm

This looks like a sane process and what happened when I did "market" orders, but at that time I didn't know you weren't supposed to buy Market. After that relatively easy buy, I came across Bogleheads and read somewhere to never use Market orders, so the next time, I tried to do Limit orders and the one transaction I tried wasn't successful--then the confusion began and I stopped. Is the objective to look for funds where bid/ask are very close? What if they are not? If they are not and you still want the fund, do you then buy the mutual fund version? I still don't understand when you say you received a better price than your limit order price--(although not much), how does that happen?
If you want to the get into the weeds on trade execution, this is a good thread to take a look at: viewtopic.php?t=165732. One thing you'll see is that livesoft has tried all sorts of things with orders that you're not supposed to do, yet he lived to tell about it none the poorer.

In terms of the transaction that wasn't successful, probably what happened was that the price went up immediately after you placed your order. But to look into it we'd really need to the know the ETF and the date/time you were placing the order.

The other way you can look at it is that your limit protected you from paying more than you wanted to. If you placed at limit of $45.56, you are guaranteed not to pay more than that. With a market order or a mutual fund order, you are saying you want the make the purchase regardless of the price. (A mutual fund order is really just placing a market order at the close).

Regarding how one can get a price below their limit: This is what brokers mean when they speak of "price improvement". The stated bid/ask spread may be $48.88/$48.90. By shopping the order, the broker may be able to get you a better price, maybe $48.895. If so, your order was "price improved" and you saved a half-cent per share.

Lastly, I generally recommend not trying to get the absolute best price by being cute with one's limit orders. I have better things to do with my life than trying to save a grand total of $1 on a $5000 ETF order when I'm planning to hold the shares for 20+ years.

Mutual funds are great; ETFs are great. I personally prefer ETF because they are custodian agnostic. If I decide I don't like broker X and I want to move to broker Y, I can transfer my ETFs with no issue. On the other hand, not all mutual funds transfer. If you want to hold Admiral class Vanguard funds, you pretty much need to do that exclusively at Vanguard. Same goes with "Premium" shares at Fidelity. I like to choose the investment and my broker independently, hence my preference for ETFs.

All of that said, whether to use funds or ETFs ranks about #67 in the list of most important issues in investing, so I want to keep my opinions on the subject in perspective.

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by Earl Lemongrab » Sun Jun 25, 2017 5:47 pm

When I became serious and started my portfolio, I used ETFs. I did not find them to be difficult at all, even though I was a beginner. I don't consider myself a superior investor. I think anyone who takes a hour or so to read up on the topic will be able to use ETFs without difficulty.

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by dia » Sun Jun 25, 2017 6:10 pm

Earl Lemongrab wrote:When I became serious and started my portfolio, I used ETFs. I did not find them to be difficult at all, even though I was a beginner. I don't consider myself a superior investor. I think anyone who takes a hour or so to read up on the topic will be able to use ETFs without difficulty.
So what made you decide to buy ETFs?

I've been reading about ETFs for hours and it was easy when I bought using Market orders. Once I tried Limit orders with big differences in the ask price, I found it challenging and wasn't getting my transactions to go through. Still not sure it's worth all this confusion in order to buy ETFs rather than mutuals. This forum has been helpful with walking me through it.
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by triceratop » Sun Jun 25, 2017 6:12 pm

stlutz wrote:A mutual fund order is really just placing a market order at the close
Just to clarify, a mutual fund order is a market NAV order at the close. Now, I know that doesn't really exist, but what I mean is that although you are placing an immediate order you're going to receive the NAV price for that day. That makes it different enough from an ETF bought at the close (which may or may not be at NAV) to be important to me.
dia wrote: So what made you decide to buy ETFs?

I've been reading about ETFs for hours and it was easy when I bought using Market orders. Once I tried Limit orders with big differences in the ask price, I found it challenging and wasn't getting my transactions to go through. Still not sure it's worth all this confusion in order to buy ETFs rather than mutuals. This forum has been helpful with walking me through it.
I began using ETFs when I decided I wanted to switch brokers (for a variety of reasons) and realized this was an easy way to make my assets portable. I enjoy the freedom they give me, in addition to portability. It might seem like a small thing, but I very much like that I can tax gain harvest by selling/buying the same fund intraday. That is, I will hold the same funds that I began with.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: ETFs or Mutual Funds for an inexperienced investor

Post by WL2034 » Sun Jun 25, 2017 6:31 pm

stlutz wrote:
Mutual funds are great; ETFs are great. I personally prefer ETF because they are custodian agnostic. If I decide I don't like broker X and I want to move to broker Y, I can transfer my ETFs with no issue. On the other hand, not all mutual funds transfer. If you want to hold Admiral class Vanguard funds, you pretty much need to do that exclusively at Vanguard. Same goes with "Premium" shares at Fidelity. I like to choose the investment and my broker independently, hence my preference for ETFs.

All of that said, whether to use funds or ETFs ranks about #67 in the list of most important issues in investing, so I want to keep my opinions on the subject in perspective.
I agree with this. I have mutual funds at Vanguard. However, when using another brokerage (Merrill Edge, Chase, E trade, etc.), I much prefer to hold ETFs actually because of the ease of transfer (at least in theory). Since I am just buying mostly VT, VTI, VXUS, I just purchase during trading hours with a market order. At some point I might learn more about the different types of trades, but since these are all high volume with very low spreads, I just place the market order and move on.

lazydavid
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by lazydavid » Sun Jun 25, 2017 9:36 pm

dia wrote:Thank you... It's a no brainer isn't it.

Teach your son all of this stuff as soon as he's able to grasp it. It helps not to feel so intimated by investing like so many adults are. I'm thankful for forums like this-- because no ONE in my family or circle of friends can offer any help or advice. They stay as far away from it as possible and are not even interested to learn more. Crazy.
That's the plan. I'll eventually ease him into a three-fund portfolio, but at his age and given the small balance, I opted for simplicity. On any given day, he can blurt out "Alexa, ask Bloomberg how the markets did today", and the first part of her response is always the results of the S&P 500. Allows him to be as engaged as he chooses to be. I've explained to him that the balance is going to fall at some point, but also that for the foreseeable future, he'll never lose "his" money, since we do a 1:1 match on his contributions. So when the inevitable correction comes, he'll lose some of "my" money, but none of his own. Best training wheels for the equity market I could come up with. :P

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Earl Lemongrab
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Re: ETFs or Mutual Funds for an inexperienced investor

Post by Earl Lemongrab » Sun Jun 25, 2017 11:44 pm

dia wrote:
Earl Lemongrab wrote:When I became serious and started my portfolio, I used ETFs. I did not find them to be difficult at all, even though I was a beginner. I don't consider myself a superior investor. I think anyone who takes a hour or so to read up on the topic will be able to use ETFs without difficulty.
So what made you decide to buy ETFs?
Flexibility. I could buy the lowest-cost funds at the custodian of my choice.

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