ETFs are a relatively recent phenomenon, the criticism I remember from 2008 era is having paycheck + employee stock purchase plan + 401k concentrated in a single stock - employer's.
Met a lot of bums in suits trying to sell me on several flavors of BS over the years. lol =3
> Regular mutual funds usually have higher risk ... than the ETFs.
In general, most amateur holds permute well below 3 to 4 months on average. Note the old joke: "Bulls make money, bears make money, pigs get slaughtered"... was never funny for those providing cash capital to gamblers.
Most people assume they are luckier than average... and most of Las Vegas was also built on losers money.
Have a great day, =3
Personally, I prefer retaining the option to sue people that pull stunts. But to each their own... =3
If that's an option for you, sure. I work in finance and retain FINRA arbitration as a customer. When I'm signing with clients, I do not like to include it--I have a strong advantage in court and don't want a venue that's biased against me as a professional.
All of this is totally irrelevant to ETFs, mutual funds and CMOs because those are distributed funds whose terms aren't negotiable after offering. (If you're worrying about suing the guy selling you ETFs, you're doing something wrong. Probably overtrading.)
They seem to be posting a lot of word-salad comments, but assuming good faith, they're saying these are separate downsides of mutual funds over ETFs.
Mutual funds trade on your behalf, like an ETF, but they pass through the gains and losses. That can be painful if they realise those gains when you'd rather not have them, or crystallise losses when you don't have offsets. In this, they're correct. On risk, they're wrong--you can stuff nonsense into ETFs as comfortably as mutual funds. What they're indirectly criticising here is active versus passive management, which is its own can of worms.
The only advantage of a mutual fund over an ETF is it provides friction to trading. Otherwise, they're a vestige from the cusp of computerised portfolio management. (If you have more than ~$1 to 10mm, you should be rolling your own portfolio in most cases.)
My issue with bank-fool recommend mutual funds is primarily they are often a self-serving structured product. i.e. the odds a sucker never sees a consistent behavior is far greater than random chance, and a unconstrained arbitrary guess of a chicken would likely perform better in the markets.
Best of luck, =3
Again, you’re criticising active management in general. (And seem to be mixing up alpha and tracking error. Passively-managed funds aren’t aiming to outperform the market.)
There is no evidence actively-managed ETFs (or hedge funds, for that matter) outperform actively-managed mutual funds. There is also not a material difference in tracking error between their passive products.
ETFs are a retail product. Like mutual funds. Make financial decisions based on the product, not the wrapper. (Also, where in the fuck does one go to get mutual funds in 2025 anyway?!)
You have exceeded my off-topic straw-man limit for the day.
Best of luck, =3
> This account posts a lot of off-topic straw-man arguments, and wild context guesses like regular bot slop.