Investing for retirement and I see a lot of people talking about vanguard ETFs like VTI. I have a fidelity account for my Roth IRA where their mutual funds like FSKAX essentially do the same thing but at a 0.015% expense rate. Is there any reason in a Roth IRA to choose the fund with a higher expense ratio? They essentially give the same returns but one at a lower expense rate. And it’s a Roth so if I ever for some reason change off fidelity, I can sell it all off and buy VTI instead and not get capital gains taxes. Why would one pick vanguard ETF over fidelity mutuals in this case?
Why should I pick ETFs be mutuals?
byu/Available_Sundae1224 inpersonalfinance
Posted by Available_Sundae1224
2 Comments
The only reason might be intraday trading. Not really an important reason for normal buy-and-hold investing.
People recommend ETFs more because you can purchase them at any broker while mutual funds sometimes will have fees if you are buying another brokers mutual fund on a different brokerage platform. Like buying a Schwab mutual fund on Fidelity will likely incur a fee. Practically speaking they as long as the index fund tracks the market you are seeking and has low fees, then use whatever ETFs or Mutual funds you want