Skip to main content
No. of Recommendations: 1
There is also the small risk of buying/selling at a discount or premium to NAV with an ETF, which is not an issue with an open end mutual fund.

There may also be a minimum holding period requirement with a mutual fund there would not be with an ETF.

ETFs are more tax efficient, if these are being held in a taxable account, when compared with their open end MF counterparts. That's because on large share redemptions the ETF can pay its institutional holders in-kind with the most appreciated shares of a stock as opposed to a MF which must first sell the shares into the market thus realizing the capital gain.

BruceM
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.