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Things To Consider Before Moving Completely From Mutual Funds To ETFs

ETFs continue their steady growth and are predicted to have over $50 trillion in assets over the next decade.

Shouldn’t investors just dump all their mutual funds and go with ETFs?

No.

ETF trends shared insights from Morningstar’s Christine Benz.

ETFs have grown steadily since the 2008 financial crisis. Investors find the exposure to baskets of stocks to be more attractive and slightly less risky than the exposure to individual shares.

The current record-length bull market has been quite challenging for active strategies.

Benz advises investors to consider these things before changing completely from ETFs to mutual funds:

 

  1. Taxable Account
  2. Appreciation of Holdings in a Taxable Account
  3. Heavy Stock Component in Taxable Portfolio
  4. Sizable Share of Traditional Stock Index Funds in Existing Portfolio
  5. Cost of ETFs Compared to Existing Funds in Current Portfolio
  6. Commissions to buy and sell ETFs
  7. Flexibility of Funds

 

You can find the full article here.

Read 413 times Last modified on Tuesday, 07 January 2020 09:28
Tuesday, 07 January 2020 09:18

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