Investing
4 months ago

Index funds vs ETFs — what's the practical difference for a buy-and-hold investor?

18

I've been investing in Vanguard index mutual funds (VFIAX, VTSAX) for years. Now everyone talks about ETFs. Are ETFs actually better for a long-term buy-and-hold investor in a tax-advantaged account? I dollar-cost average $2,000/month — are mutual funds better for that since I can buy fractional shares automatically? Do ETFs have lower expense ratios?

DR
@drodler

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