Though some may disagree, exchange-traded funds have certainly proved their worth over the years. With more than 1,500 products to choose from, more and more investors have turned to the ETF wrapper, embracing the vehicles’ low-costs, efficiency, and many other advantages. Consequently, total assets of the ETF industry have swelled to over $1.7 trillion [see also 7 Charts to Put the ETF Industry in Perspective]. Some investors and industry professionals, however, have not yet come to embrace these products, preferring mutual funds instead. For those who need some convincing, we’ll try to show you why ETFs are better than mutual funds, in two charts. For this exercise, we take a look at the popular Emerging Markets ETF , comparing it to the GS Emerging Markets Equity Fund (GEMCX). First, a comparison of expenses: The GEMCX mutual fund charges a hefty expense ratio of 2.65%. VWO, on the other hand, charges [...] Click here to read the original article on ETFdb.com. Related Posts: Sell On The Pop Prospects March 17th Edition Understanding the Mutual Fund vs. ETF Cost Difference 4 Contrarian ETF Plays for 2014 The Hidden Costs of ETF Investing Picture Edition: Major Asset Class Returns From The 2009 Bottom
Though some may disagree, exchange-traded funds have certainly proved their worth over the years. With more than 1,500 products to choose from, more and more investors have turned to the ETF wrapper, embracing the vehicles’ low-costs, efficiency, and many other advantages. Consequently, total assets of the ETF industry have swelled to over $1.7 trillion [see also 7 Charts to Put the ETF Industry in Perspective]. Some investors and industry professionals, however, have not yet come to embrace these products, preferring mutual funds instead. For those who need some convincing, we’ll try to show you why ETFs are better than mutual funds, in two charts. For this exercise, we take a look at the popular Emerging Markets ETF , comparing it to the GS Emerging Markets Equity Fund (GEMCX). First, a comparison of expenses: The GEMCX mutual fund charges a hefty expense ratio of 2.65%. VWO, on the other hand, charges [...]
Click here to read the original article on ETFdb.com.
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