Please forward this error screen to 75. At their unit investment trust vs etf, they are basically just index mutual funds which are bought and sold as stocks. In that way, they are similar to closed-end mutual funds which happen to be index funds. An obvious question is, “Which should I use, ETFs or conventional index mutual funds?

This web page lists pros and cons of ETFs as compared to conventional index mutual funds. For articles and papers discussing ETFs, see here. Some ETFs may have lower expense ratios than similar conventional index mutual funds. If true, this suggests that ongoing expenses would be lower, which favors ETFs. However, note that most ETFs have expense ratios which are not dramatically lower than the lowest cost conventional index mutual funds with similar investment goals. ETFs may be somewhat more tax efficient than similar conventional index mutual funds. ETFs may have somewhat less “cash drag” than similar conventional mutual funds.

Conventional mutual funds typically need to maintain a small amount of their portfolio in cash in order to meet ongoing cash redemptions. An ETF has no such need because it never has to deal with the possibility of cash redemptions. This may provide a slight advantage for ETFs over similar index mutual funds. ETF in favor of the alternative. If you enter a “limit” order, the price you enter may not get you execution in the near future, perhaps causing you to have to re-price your order to a less desirable price in order to increase the chances of getting execution in the near-future.