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Re:The ETF Tax Dodge by intopieces on Sunday March 31, 2019 @02:30PM (#19537282)
If ETFs are able to dodge taxes that mutual funds cannot, why do people still invest in mutual funds? Different risks?
Re:The ETF Tax Dodge by greenyoda on Sunday March 31, 2019 @03:07PM (#19537584)
One disadvantage of an ETF is that you have to pay a brokerage commission each time you trade it. Many mutual funds have no fees for buying/selling shares. If you have a savings strategy like automatically investing a percentage of every paycheck, the commissions on ETF trades could add up quickly.
Re:The ETF Tax Dodge by loeg on Sunday March 31, 2019 @03:24PM (#19537721)
Brokerage commissions are $0 for Vanguard ETFs in a Vanguard brokerage or Fidelity ETFs in a Fidelity brokerage, etc. This isn't a real downside unless you want to trade ETFs in a brokerage account unaffiliated with the ETF.
Re:The ETF Tax Dodge by loeg on Sunday March 31, 2019 @03:23PM (#19537712)
ETFs only trade interday; mutual funds only trade end of day. It can be more convenient to automatically invest some portion of your pay in a mutual fund than an ETF. (Also, Vanguard mutual funds are shares classes of their ETFs, so they have the same tax benefit ETFs do here.)
Re:The ETF Tax Dodge by twiceaday on Sunday March 31, 2019 @05:19PM (#19538470)
You can buy fractional shares of mutual funds. Vanguard only lets you auto-invest on a schedule into mutual funds. Mutual funds trade once a day, at the end of the day, for the intra-day-valume-based average cost so you are not timing the hour.