07.05.2014 - ETFs Vs. Mutual Funds: Why ETFs Are Cheaper
ETFs have found their way into countless portfolios over the years thanks to the efficiency of the exchange-traded product structure; day traders have embraced these funds for their unparalleled liquidity and precision, while investors have taken advantage of the low-cost and diversification features. While there’s more than a handful of reasons why ETFs are better than mutual funds, at the heart of the matter lies one straightforward advantage: cost There are many good reasons why a lot of noise has been made about the cost difference between mutual funds and ETFs. At ETF Database, we’ve certainly emphasized the cost advantage of ETFs over mutual funds, especially over a long-term investment horizon, and we’re certainly not alone when it comes to preaching the benefits of lower fund management fees...............................................Full Article: Source
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