So FG had mentioned ETFs the other day to me, when I mentioned index funds generally being the best investment. I had heard the term but had never really looked into what they were. I read up on them and they sounded pretty interesting. I was even thinking of maybe rolling part of my old 401k into one.
Now WSJ has come out with an article about index funds vs. ETFs...
http://online.wsj.com/article/SB117803002196288190.html?mod=todays_us_nonsub_journalreports&apl=y
Can anyone find the WHOLE article?
Now WSJ has come out with an article about index funds vs. ETFs...
http://online.wsj.com/article/SB117803002196288190.html?mod=todays_us_nonsub_journalreports&apl=y
“The margins of victory for the top performers in each of the four categories may seem small at first glance -- about 0.05 percentage point in many years. But compounded over time, they are significant.
Take an investor who has a nest egg of $250,000. If that money is put into one of the lowest-cost S&P 500 funds, the sum would turn into $4,877,444 in 30 years, assuming a 10.5% gross return each year in line with the broader market's historical average.
On the other hand, if the fund returns 10.45% a year, the investor would end up with $4,811,615, about $66,000 less.”
Can anyone find the WHOLE article?