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While talking about ETF's .. all the fool articles say "the best ETF strategies are probably the simplest ones: filling asset allocation gaps and replacing higher-fee mutual funds."

what exactly does that mean?
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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
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assuming you know what an ETF is.

An ETF can often be very specialized, required to stay within one market sector.

Suppose you own large-cap stocks and small-cap stocks. You want to own mid-cap stocks without a lot of work. So you buy a mid-cap ETF, for instance, MDR. That's "filling an asset allocation gap".
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