Stocks, Bonds, and Investing: Oh, My! - 30 views
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However, that is not the case with ETFs.
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Oscar Tapara on 11 Jul 13ETFs doesn't has fees?, just 1.5 of your investment?
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Oscar Tapara on 11 Jul 13No, just fro .18% NAV. So. you are trading mutual fund for very cheap
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ETFs are created by companies for the specific purpose of low management costs, estimated to be around .18% of your NAV.
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As people withdraw their money from a mutual fund, the mutual fund must sell securities to cover those redemptions. So, every time the mutual fund sells a stock, you have to pay capital gains tax on it.
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This being the case, the capital gains that you must pay on an ETF are much less than that of a mutual fund because of the lack of capital gains.
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What it really depends upon is how much you are going to invest and how frequently you are going to invest.
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If you're only going to invest $200 a month in an ETF, the $20 commission results in an immediate 10% loss,