04-10-2014, 12:13 PM
Hi Dexter-
In my opinion, if you want to buy a fund that tracks the S&P you are best sticking with a low expense rate ETF.
The actively managed mutual fund is going to charge higher fees because they are going to have to pay a professional fund manager. An ETF that just tracks the S&P 500 index will be run by computers and thus have much lower management costs. This is why they can charge lower fees generally.
I don't think there would be any advantage to buying a mutual fund in this situation.
In my opinion, if you want to buy a fund that tracks the S&P you are best sticking with a low expense rate ETF.
The actively managed mutual fund is going to charge higher fees because they are going to have to pay a professional fund manager. An ETF that just tracks the S&P 500 index will be run by computers and thus have much lower management costs. This is why they can charge lower fees generally.
I don't think there would be any advantage to buying a mutual fund in this situation.