ETFs vs. Index Mutual Funds: A Quick Comparison
Wednesday, March 10th, 2010
Tom Lydon (ETF Trends) submits:
Much has been made of the differences and similarities between index mutual funds and exchange traded funds (ETFs), but less has been written on which makes the most sense for investors, cost-wise.
In the summer of 2003, Leonard Kostovetsky wrote an article titled “Index Mutual Funds and Exchange Traded Funds,” published in the Journal of Portfolio Management, which quantified the differences between the two investment vehicles by comparing explicit and implicit costs, according to Investopedia.
