- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: mutual funds that invest in mutual funds...
Posted on 1/7/13 at 3:33 pm to Maniac979
Posted on 1/7/13 at 3:33 pm to Maniac979
quote:
I'm not understanding why you are looking at mutual funds when you can usually find an equivalent ETF which generally has a lower trading cost and lower or comparable expense ratio
Because you have a lot of decay in ETFs, especially depending on the strategy. Look at a chart of VXX versus the VIX and you will see the ultimate form of ETF decay due to option expiry. Also ETFs are much more complicated vehicles than most people really understand, the collateral posting backing ETFs can be made with securities that aren't even within the strategy. For example, there was a treasury ETF in Fall of 2011 that was collateralized with 30% Italian bonds.
2
Posted on 1/7/13 at 3:37 pm to BennyAndTheInkJets
quote:
Because you have a lot of decay in ETFs, especially depending on the strategy. Look at a chart of VXX versus the VIX and you will see the ultimate form of ETF decay due to option expiry. Also ETFs are much more complicated vehicles than most people really understand, the collateral posting backing ETFs can be made with securities that aren't even within the strategy. For example, there was a treasury ETF in Fall of 2011 that was collateralized with 30% Italian bonds.
^^^ This. He's looking at mutual funds because he's a passive investor, and passive investors are wise to stick with Index funds or Mutual funds.
Posted on 1/7/13 at 4:46 pm to BennyAndTheInkJets
(no message)
This post was edited on 1/12/13 at 8:31 pm
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News