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Recommend a index-based mutual fund or ETF?
Posted by: anonymouse1
Date: October 07, 2020 04:45PM
I've got about a $5K inheritance that I want to move into an ETF or mutual fund. Taxes aren't an issue, but I have some work conflicts, so I'm looking to move into a market-based index.

I'm looking the new Fidelity no-fee, and Vanguards VOO.

Any recommendations, oh ye financial mavens?

Thanks!
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Re: Recommend a index-based mutual fund or ETF?
Posted by: mattkime
Date: October 07, 2020 04:57PM
I like vanguard funds.

Where do you keep your retirement funds?

---

[investor.vanguard.com]

VTSAX and chill!







Edited 1 time(s). Last edit at 10/07/2020 04:58PM by mattkime.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: Dennis S
Date: October 07, 2020 04:58PM
My uncle the stock broker has said he likes mutual funds better than ETFs.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: anonymouse1
Date: October 07, 2020 05:10PM
Thanks. Has he said why? My understanding is that mutual funds are less liquid, and have higher fees.

Quote
Dennis S
My uncle the stock broker has said he likes mutual funds better than ETFs.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: raz
Date: October 07, 2020 05:15PM
What’s your time frame? What’s your risk tolerance ?



--------------

Embarassing myself on the Internet since 1978.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: hal
Date: October 07, 2020 05:20PM
Quote
anonymouse1
Thanks. Has he said why? My understanding is that mutual funds are less liquid, and have higher fees.

Quote
Dennis S
My uncle the stock broker has said he likes mutual funds better than ETFs.

depends on everything

ETFs don't have management fees, but you buy them on the open market so there might be fees in buying or selling depending on where you buy/sell your stocks. Mutual funds range from zero costs to GIGANTIC mgnt fees. Some funds restrict when and how you can sell, some do not. I don't think any funds allow sales midday in the market, but you might find one that will - otherwise, ETFs are WAY more liquid.

At some point, you're gonna have to get your feet wet and look around to see what fits your needs.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: Dennis S
Date: October 07, 2020 05:38PM
Quote
anonymouse1
Thanks. Has he said why? My understanding is that mutual funds are less liquid, and have higher fees.

Quote
Dennis S
My uncle the stock broker has said he likes mutual funds better than ETFs.

I think it was because EFTs are another step removed from something tangible. I think he said it might just be psychological with him. There are two different ways they are bought and I don't know what they are. It should be easy to find and then pick the one that's best for you.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: d4
Date: October 07, 2020 05:40PM
43 shares of AAPL and let it ride.



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Re: Recommend a index-based mutual fund or ETF?
Posted by: Fritz
Date: October 07, 2020 06:30PM
I have a few Vanguard items. They've been alright.

[www.maxfunds.com]

[www.maxfunds.com]



!#$@@$#!

If there are spelling issues, please pardon, Owen the cat is sitting on my keyboard.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: Carnos Jax
Date: October 07, 2020 06:35PM
Index based mutual fund: VOO

ETF: ARKK



Edited 1 time(s). Last edit at 10/07/2020 08:08PM by Carnos Jax.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: GGD
Date: October 07, 2020 06:39PM
ETFs are bought and sold like stocks so you can place limit orders for the exact price you're willing to buy/sell at. Mutual funds get priced at the end of the day and you get whatever the price is on the day of your transaction.

For ETFs you will recognize capital gains when you sell and you can decide when that is and how it fits with your tax situation. Mutual funds distribute capital gains at least annually, and you're taxed on it then, and the the reason for the capital gains is due to volatility from other customers buying and selling causing the need for the fund to buy/sell the underlying securities.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: freeradical
Date: October 07, 2020 10:25PM
Quote
GGD
Mutual funds distribute capital gains at least annually, and you're taxed on it then, and the the reason for the capital gains is due to volatility from other customers buying and selling causing the need for the fund to buy/sell the underlying securities.

This is not true for index funds, at least the Vanguard stock index fund I invest in.

I've never paid capital gains on it; I've only paid taxes on dividend distributions.
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Re: Recommend a index-based mutual fund or ETF?
Posted by: NewtonMP2100
Date: October 07, 2020 11:09PM
.....tried and true......'old faithful'.....is the Vanguard S&P 500 Index fund......



_____________________________________

I reject your reality and substitute my own!
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Re: Recommend a index-based mutual fund or ETF?
Posted by: Michael
Date: October 08, 2020 05:43PM
IVV--iShares Core SP500 ETF that has a 0.04% fee.

[www.nerdwallet.com]
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Re: Recommend a index-based mutual fund or ETF?
Posted by: bfd
Date: October 08, 2020 11:53PM
Vanguard rules. For now, anyway…
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