Vanguard's ETF shares should get to keep the ratings generated by their traditional fund sisters, too.
Moreover, the transparency cuts into the managerial edge that he believes a top professional gives a traditional fund.
Traditional fund-raising, using direct mail and events, is far more effective than newer methods, such as e-mail and social networking.
The only compelling argument for sticking with the traditional fund is the added juice to be gained by the use of derivatives.
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It is not too difficult to work out why banks and traditional fund-management firms should want to be more like hedge funds.
It works because it's fun, social, creative and easy and it's massively more efficient, both in cost and labor, than traditional fund raising techniques.
His four-year-old FolioFN in Vienna, Va. has a system for replacing the traditional fund with automated portfolios that the customers manage from their own computers.
The new ETF, set to list on NYSE Arca on March 1, will invest with the same goals as its traditional fund cousin, save the use of derivative securities.
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Which indexes did the funds track, was there overlap among funds, should a traditional fund be used or an ETF, what where the expenses, what were the trading costs?
Investors would not dream of paying a performance fee to traditional fund managers merely for matching the market return, yet they cheerfully reward private-equity managers for the same feat.
However, traditional fund management business, focusing on both mutual funds for retail clients and segregated accounts for institutions, have been regularly integrated into underwriting and brokerage firms over the years.
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Other possible improvements include dividend reinvestments that allow ETF shareholders to reinvest dividends in new shares at net asset value, just like a traditional fund, as opposed to an intraday price that could be above (or below) the NAV.
The average exchange traded fund (ETF) does have a lower expense ratio than the average traditional mutual fund, but not less than most low-cost index funds that have been available for decades.
In many cases, a traditional index fund may be a better solution to your investment needs.
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For many parents used to nearly unlimited switching in traditional mutual fund families, this may not be sufficient.
And a traditional bond fund simply lacks that constraint or lacks the flexibility.
Traditional mutual fund research has focused on past performance and low management costs.
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Perhaps they should have reported that ETF investors are better looking, make better lovers, and can carry a tune better than traditional mutual fund investors.
To minimize the excessive risks of the stock market and keep down investment management costs, we can invest the funds from all the individual retirement accounts as a pool, mirroring the way that the assets of a traditional pension fund are invested.
In those markets, a traditional index mutual fund will be a far better choice.
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By contrast, with a traditional index mutual fund, "you're always buying at the net asset value, " Mr. Goldie notes.
Acquisition cost vs. a traditional index mutual fund is no longer a consideration.
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To help make this pill palatable to working-class investors, fund families often stress at some point there will be no big, one-time front-end load, such as the 5.75% sales charge for traditional Class A fund shares.
The Compass EMP Alternative Strategies Fund has no traditional US stock, international stock, or US bond that you sit and allocate hoping to make money.
However, I believe corporate bonds should be delivered using a traditional open-ended mutual fund because it avoids the discounts and premiums that develop in bond ETFs.
Calpers said its rewritten investment criteria make it the first public pension fund to look beyond traditional economic factors.
Assets were flowing out of traditional brokerage accounts and into mutual fund firms in order to gain index fund exposure.
But if you have less than five years before your kid sits down to freshman composition, a risk-free certificate of deposit, money market fund or even a traditional savings account is a better bet.
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