Wednesday, May 23, 2007

Tools For Evaluating Index ETF vs. Mutual Fund Purchases » My Money Blog

 

Tools For Evaluating Index ETF vs. Mutual Fund Purchases

Even though the expense ratio for an ETF may be slightly lower than a mutual fund, that doesn’t necessarily completely explain the cost differential between them. In addition to any commission costs, there are also the issues of bid/ask spreads and deviation from NAV. These are explained briefly below along with some useful tools to evaluate their impact.

Source: Tools For Evaluating Index ETF vs. Mutual Fund Purchases » My Money Blog

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