Index funds vs. ETF?

Question

Hi. I am drawn to the idea of dollar cost averaging and now contemplating of invest regularly into one of these financial instruments.

What principles can I follow to pick a good deal?

Thanks!

Answer 1

Okay, try this...since a fund is too restrictive (too much min buy in- not diversified enough)...go with the ETF's ( diverse, maybe a US index, maybe a Latin Amer, maybe some Healthcare, etc) ...if you continue to deposit, money will stay in your " core account" until YOU specify another investment for it ...or add to whatever is working best for you...you can check in once a month..or every three..or six, something like that.
In most ( but not all) core or reserve accounts you still draw some little interest ... should work out if you want to be sort of active.
And WHY NOT...it's your money your checking on??

Answer 2

determining on between an index fund and an ETF is largely a turn of the coin in the adventure that your purpose is lengthy time period making an investment, which contain for retirement. Index money and ETFs both have a tendency to have low prices--and some index money (like forefront's) would have decrease prices than some ETFs. once you purchase an ETF, you should go with the help of a broking service and pay a fee. you're also probable to pay the ask cost for the ETF, which includes an implicit transactional cost by technique of the broking promoting the ETF. So index money can in certain circumstances be more inexpensive than ETFs. that's authentic that the cost of an ETF can variety from the cost of its underlying holdings, for actually short-time period marketplace-depending causes. in case you purchase and carry an ETF lengthy time period, those anomalies are not probable to count number a lot. in case you commerce an ETF short time period (no longer an truly good concept), you may take unpredicted losses. the cost of a mutual fund is depending on the last expenditures of the stocks it holds. So that's the authentic cost as of four:00 p.m. jap Time.

Answer 3

Mutual funds easier to do dollar cost averaging as etfs must be bought like stocks. The idea that you are only going to invest in 1 instrument is the problem & must be jettisoned. Even picking a S&P 500 index fund does not diversify you enough. No 1 instrument does. ADX & PEO 2 fine closed end funds that sell at a discount. IAU covers gold which has room to move. PGJ covers China. EWA Australia. dollar cost averaging not a panacea. If you have the $$ available get it in the market. Somethings go up while others go down IE Airlines vs Oil stocks. That's why diversification much more important than DCA.