Ask Terry Questions ETFs vs. Mutual Funds

ETFs vs. Mutual Funds

By Terry Savage on October 09, 2023 | Investments

Hi Terry,
I have an S&P 500 type fund in my brokerage account. In my IRA, I have total bond market, total international stock, and total stock market type funds. The ETF expense ratios are between 1 to 3% less than the mutual fund expense ratios. The only reason I would consider converting is for lower expenses; not to trade in real time. Would converting make sense? I haven’t had to take RMDs yet. Would converting to ETFs in my IRA make it more difficult to rebalance ?
Thank you

Terry Says

Which mutual funds are you using for your IRA account?? If Fidelity or Vanguard, I sincerely doubt you’d get lower fees in ANY ETF!!

The real answer is to do a rollover of your IRA directly to Fidelity or Vanguard. No reason to pay the expenses of purchasing ETFs to get your diversification.

Read this article for instructions on how to do a rollover:



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