ETF, Money Market Fund, & CD Rates

Posted by admin | Finance | Saturday 29 December 2007 12:50 am

Over the last few years ETF funds have become very popular. The

combination of liquidity, low expense, and other feature make ETF funds tough to beat.

ETF’s trade directly on the stock exchange, much like stocks. This provides very fortudious liquidity and great tax control. Taxes are

controlled, allowing you to sell when it makes the most tax sense. Traditional mutual funds don’t afford this ability.

The expense are much cheaper in ETF funds as opposed to traditional mutual fund investing. Because most of these funds trade

based on indexes allows for reasonable fees. Most traditional active fund managers incur fund expenses due to ongoing trading and

administration.

You can purchase ultra conservative or super aggressive ETF funds. There are thousands of funds to choose from depending on

unique niches and your overall tolerance for risk. Money

market funds are a well-known fund type that provides for the safety conscious. Money market funds yields are often

competitive with the top CD rates. They combine the security

inherit with fixed income investments along with the higher yielding CD rates. There are most commonly purchased for liquidity. They

can be sold at anytime without penalty, which is the norm when it comes to CD investing.

Much like stock investing, ETF funds involve decent investment knowledge. If you’re new to investing or have limited investment

knowledge it may be worthwhile to work with a qualified investment professional before diving in.

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment