Also, two Vanguard funds (Emerging markets (VEIEX) and FTSE All-World Ex-US (VFWIX)) have purchase fees (0.5% and 0.25% respectively), and one (VEIEX) has a redemption fee (0.5%). Both of these funds have corresponding ETFs (VWO and VEU) that do not impose these fees. So depending on your ETF transaction costs, it may be less expensive to buy the ETF.
Thanks Guys!!!! Atleast now I am abit clearer and am leaning towards mutual funds. Re- iterating my scenario, I am planning to put about 3k in ROTH IRA. I plan to buy some funds and leave them alone for about a year atleast. And depending on their returns and potential next year, change them if needed.
Since I am not planning to touch the funds a lot, would ETF's be more advisable? Also are returns on ETF's better than Mutual Funds?
Some random readings suggested Mutual Funds over ETF's since my aim is to make money for long term. It further added about using Eaton Vance over other Brokerage accounts, suggesting how you can just put money to your ROTH and not worry about other fees. Finally it advised to buy Class C Open ended mutual funds.
Could some one throw more insight into this please?
I know my confusions never end, but will hopefully soon so. Thanks Manny
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