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Reply to "What is an ETF?"
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[quote=Anonymous][quote=Anonymous]Fees on ETFs are lower because they are not actively managed but are automated instead. They track indexes like the S&P 500 and sectors like financials, etc. I prefer them to mutual funds because of the difference in fees.[/quote] You can get lower expense ratios on the index funds than in most ETFs. You would need to be careful to determine whether you can reinvest dividends and cap gains without cost, as you can with regular mutual funds. They are often not as diverse, focusing on a particular sector or country. You have to pay to trade, like you would stock, so there are increased transaction fees.[/quote]
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