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ETF-O-Mania

Here, finally, someone with a clear head discussing the pros and cons of ETFs. Until now I have read very few articles that had anything negative to say about ETFs and none anywere as clearly as this article.

What it comes down to, is that ETFs are mutual funds sold on the stock market rather than my your local bank (or whatever financial institution). Great, because there’s no sales commissions to pay those financial advisors. On the other hand, you’re typically paying a commission to your broker for any stock purchase you make. That doesn’t show up in the ETF’s MER but it affects your return none-the-less.

And if you plan to purchase regularly then you’re going to regularly be paying those transaction fees.

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