AAA Oct. 30, 2009
Six cheap ETFs
By SHAILA DANI
Six cheap ETFs
By SHAILA DANI
Some exchange-traded funds are becoming increasingly attractive as a cheaper alternative to mutual funds. The average fee charged by management companies for a $1,000 investment in a mutual fund is $12.40 every year, versus $5.40 for the same amount in a typical ETF. One thing to keep in mind: if you plan to sock away a little every month, mutual funds are a better choice. That’s because ETFs, which trade all day long like stocks, incur trading fees every time you invest in one through your broker. That's in addition to the management fees and boosts the total costs. Analysts say these six are solid choices if you are looking to invest a sizeable amount of money at once.
DATA: Morningstar, IndexUniverse.com
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