The Motley Fool Discussion Boards

Previous Page

Investing Education / Terms, Definitions, & Jargon

URL:  https://boards.fool.com/greetings-quotthe-best-etf-strategies-are-23059735.aspx

Subject:  Re: ETF's Date:  9/21/2005  10:47 AM
Author:  jbking Number:  1589 of 2244

Greetings,

"the best ETF strategies are probably the simplest ones: filling asset allocation gaps and replacing higher-fee mutual funds."

I think it worth noting that currently most ETFs are index funds and generally have low cost so that in a way what is being said here is that one should use an ETF in the same market segment instead of using mutual funds. So for example instead of holding Mighty Large Companies 'R' Us Fund(SUCKX), use a large-cap ETF like iShares S & P 500(IVV) or Vanguard Large-cap VIPER(VV).

In a way this isn't that different than advocating index funds instead of actively managed funds which generally cost more, though not always. Elfun Trusts(ELFNX) has an expense ratio of just .15% if one wants an example of a cheap actively managed fund.

Regards,
JB
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us