Date: Tue, 3 Apr 2007 03:59:26 -0500
From: "Elle" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Investing advice
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"CMJohnson"  wrote
> On Apr 2, 4:43 pm, "Elle" 
>  wrote:
>> What benefits do you claim mutual funds have over ETFs 
>> such
>> that mutual funds are clearly the superior choice?
>
> Well, ETF's don't trade much inside of their basket of 
> holdings.  The
> holdings are meant more as a cross section of the sector 
> or market
> they represent.  This means that there are minimal capital 
> gains
> distributions that, despite creating a taxable event, can 
> make up a
> significant portion of return.  Plus, fund managers can 
> move their
> portfolios to match or hedge market movements, ETF's don't 
> do this as
> much. Don't get me wrong they are good, just be careful to 
> look into
> all the pros and cons.

There are specialized ETFs. There are specialized mutual 
funds. There are S&P 500 index ETFs. There are S&P 500 
mutual funds. I suggest you re-check the pros and cons of 
each, because those you list are not ones I have ever seen. 
Today I would hesitate to draw a distinction between the two 
categories of mutual funds.