re: Mutual Funds vs ETFs for taxable account investing

ETFs are better for the reason you and the previous commenter mention. Even better so now since the mutual funds will have a lot of embedded gains that will be passed onto the fund holders. My only comment would be to maybe use a percentage you have set for money market into a short term or ultra short term bond ETF. While the yield difference right now is minimal in a lower interest rate environment it could help out a little. Some of these would be MINT, JPST and NEAR.