ETF's are said to have won the war, and mutual funds tossed into the dustbin of history:(don't miss page 2). There will be a short grace period before recommending mutual funds becomes a prosecutable offense - tee hee.
Now that ETF's can be traded without commission and can be actively
managed, there should be no compelling reason to use mutual funds
except for when they cover a market niche not yet filled by ETFs. I
will always remember the dollars I lost by the several hour delay in
making M.F. buys or sells into a high volatility market day, and the
SEC threat to lengthen that delay.
Now let's brace ourselves to hear from the Luddite position,
romanticizing familiar ways. I recall a woebegon publishers conference
a few years ago that unanimously decried e-books and claimed their
world would end if people couldn't have the tactile feel of mouldy old
books. Now they make money like mad with book addicts downloading
twice as many e-books.
Think of the complaints if everyone read e-books, and a gov't mandate
required books must be paper. There would be revolution from those cut
off from impulse downloads or environmental concerns. Similarly think
of an ETF world where mutual funds were being introduced. An almost
useless step backwards I think. Nice if you want to purchase a
fractional share, but...
- posted 8 years ago