Ask Terry Questions MWP and ETFs

MWP and ETFs

By Terry Savage on October 11, 2014 | Investments

What do you think about investing into an MWP and what do you think about ETFs?

Terry Says:   I’m not sure what the acronym MWP refers to.  If it’s a “model wealth portfolio” that’s just a great sales pitch.  They can involve high fees to manage your money.   ETFs are Exchange Traded Funds — baskets of securities in a category — such as those related to various market sectors.  They make sense because you can buy and sell them during the day (as opposed to regular mutual funds, which are priced at the end of the day).  The commissions may be lower if you use a discount broker.  And the ongoing management fees are minimal because there is no portfolio manager — just a fixed basket of securities.  However, if you plan to add more to your investments on a regular basis, you’re better off with a traditional no-load mutual fund (Fidelty, Vanguard, T. Rowe Price) where you don’t pay a commission on each investment trade.



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