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Why buy mutual funds when equivalent ETFs exist?
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Vanguard has ETF versions of several of its mutual funds. I don't know if they are are 100% equivalent but the Vanguard site itself to them from the mutual fund pages.
Why would someone chose to own their mutual funds when an equivalent ETF is available?
mutual-funds etf vanguard
edited 2 hours ago
Craig W
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horse hair
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Vanguard has ETF versions of several of its mutual funds. I don't know if they are are 100% equivalent but the Vanguard site itself to them from the mutual fund pages.
Why would someone chose to own their mutual funds when an equivalent ETF is available?
mutual-funds etf vanguard
edited 2 hours ago
Craig W
7,24633664
asked 3 hours ago
horse hair
1,47021424
add a comment |Â
up vote
2
down vote
favorite
up vote
2
down vote
favorite
Vanguard has ETF versions of several of its mutual funds. I don't know if they are are 100% equivalent but the Vanguard site itself to them from the mutual fund pages.
Why would someone chose to own their mutual funds when an equivalent ETF is available?
mutual-funds etf vanguard
edited 2 hours ago
Craig W
7,24633664
asked 3 hours ago
horse hair
1,47021424
Vanguard has ETF versions of several of its mutual funds. I don't know if they are are 100% equivalent but the Vanguard site itself to them from the mutual fund pages.
Why would someone chose to own their mutual funds when an equivalent ETF is available?
mutual-funds etf vanguard
mutual-funds etf vanguard
edited 2 hours ago
Craig W
7,24633664
asked 3 hours ago
horse hair
1,47021424
edited 2 hours ago
Craig W
7,24633664
asked 3 hours ago
horse hair
1,47021424
edited 2 hours ago
Craig W
7,24633664
edited 2 hours ago
Craig W
7,24633664
edited 2 hours ago
Craig W
7,24633664
7,24633664
asked 3 hours ago
horse hair
1,47021424
asked 3 hours ago
horse hair
1,47021424
asked 3 hours ago
horse hair
1,47021424
1,47021424
add a comment |Â
add a comment |Â
1 Answer
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4
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A couple reasons I can think of:
- You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash.
- If you're uncomfortable entering orders with specific prices, or you're worried about bid-ask spread, you can enter a mutual fund order and you know it will be executed at the end of the day at the net asset value (NAV).
Plus, with Vanguard, once you have enough invested in a fund to convert to Admiral Shares, it's equivalent to the ETF (particularly, expense ratio) with less complexity.
answered 2 hours ago
Craig W
7,24633664
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
1
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
add a comment |Â
1 Answer
1
active
oldest
votes
1 Answer
1
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
4
down vote
accepted
A couple reasons I can think of:
- You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash.
- If you're uncomfortable entering orders with specific prices, or you're worried about bid-ask spread, you can enter a mutual fund order and you know it will be executed at the end of the day at the net asset value (NAV).
Plus, with Vanguard, once you have enough invested in a fund to convert to Admiral Shares, it's equivalent to the ETF (particularly, expense ratio) with less complexity.
answered 2 hours ago
Craig W
7,24633664
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
1
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
add a comment |Â
up vote
4
down vote
accepted
A couple reasons I can think of:
- You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash.
- If you're uncomfortable entering orders with specific prices, or you're worried about bid-ask spread, you can enter a mutual fund order and you know it will be executed at the end of the day at the net asset value (NAV).
Plus, with Vanguard, once you have enough invested in a fund to convert to Admiral Shares, it's equivalent to the ETF (particularly, expense ratio) with less complexity.
answered 2 hours ago
Craig W
7,24633664
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
1
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
add a comment |Â
up vote
4
down vote
accepted
up vote
4
down vote
accepted
A couple reasons I can think of:
- You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash.
- If you're uncomfortable entering orders with specific prices, or you're worried about bid-ask spread, you can enter a mutual fund order and you know it will be executed at the end of the day at the net asset value (NAV).
Plus, with Vanguard, once you have enough invested in a fund to convert to Admiral Shares, it's equivalent to the ETF (particularly, expense ratio) with less complexity.
answered 2 hours ago
Craig W
7,24633664
A couple reasons I can think of:
- You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash.
- If you're uncomfortable entering orders with specific prices, or you're worried about bid-ask spread, you can enter a mutual fund order and you know it will be executed at the end of the day at the net asset value (NAV).
Plus, with Vanguard, once you have enough invested in a fund to convert to Admiral Shares, it's equivalent to the ETF (particularly, expense ratio) with less complexity.
answered 2 hours ago
Craig W
7,24633664
answered 2 hours ago
Craig W
7,24633664
answered 2 hours ago
Craig W
7,24633664
answered 2 hours ago
Craig W
7,24633664
7,24633664
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
1
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
add a comment |Â
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
1
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
Would you expand on your last point? I have VFIAX for example, with fractional shares (admiral shares). Its ETF equiv. is VOO. I'm confused on which to keep long-term. They both have the same expense ratio
– horse hair
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
@horsehair It really makes very little difference. I believe you can have Vanguard convert Admiral Shares to the equivalent ETF, though not the other way around. But you won't really gain anything by doing this, unless you want to actively trade it.
– Craig W
2 hours ago
1
1
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
Also, not sure about other services but at Vanguard you can only set up scheduled transfers to mutual funds.
– Kevin
2 hours ago
add a comment |Â
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