If you are interested in learning more about the benefits of index ETF’s vs. mutual funds (including both active and indexed mutual funds), you will appreciate this 6-and-a-half minute presentation from Vanguard.
If you are already well-versed in the benefits of indexed ETF’s, the presentation doesn’t cover any new ground.
Even so, if you like numbers as much as I do you will find some fascinating data in the presentation.
I got a laugh out of the warning at the bottom of each slide:
“FOR FINANCIAL ADVISORS ONLY. NOT FOR PUBLIC DISTRIBUTION.”
Clearly information this powerful should not be handled by the public at large.
I’ve been researching the silver etf (slv) and my only hangup with it is accountability. They are supposed to have a direct correlation to silver and yet in their filing statements they say they may or may not correspond exactly to the price of silver. Which begets the question why exactly would there ever be a disparity if the fund is 100% backed by silver?
Nice article. Like you I am into numbers so I enjoyed it. Thanks for the info.
Thanks for the link! Personally I prefer ETFs because of the added flexibility and cleaner tax calculations but it really comes down to the individual.
Keith: Don’t know. Good question. I can think of some plausible-sounding reasons, but I haven’t looked into commodity funds much so it would mostly be speculation. Let me know if you find an answer.
Option Maestro: I’ve learned a lot from your site. Thanks for visiting.
Metal ETFs: I agree that the added flexibility is nice. For investors that do more frequent trading or use margin or options or other more complex strategies, the ETFs are much more suitable than mutual funds.
For long-term investors with simple portfolios, I’d say the flexibility is less important.
The clean taxes is an interesting point. I hadn’t thought about it but it’s true, doing taxes for ETFs is easier than keeping track of basis in mutual funds with reinvested dividends. I assume that’s what you meant?
Thanks for your comments.