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Originally Posted by Slava
^this thread is like crack to me. I know that I shouldn't even click but I do and can't help but reply when I do!
Anyway, I can do ETFs and basically anything security-wise (as long as it's approved). I still hold to the fact that 50 basis points isn't that far off once you factor in the costs of aquiring the ETFs. In fact some of the ETF MERs are actually starting creep up (depending on the type of underlying security and whether or not it's actively managed). Pretty hard to say with certainty that you are saving a full 2% on that basis. There are also lower cost mutual funds depending on the load and amount invested.
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You got me like eightball....The costs to acquire ETF's are dirt cheap....you won't find any crack for $9.99. Who says you need to trade them? I have a few that I bought years ago that are based on long ideas that I don't think I will sell within the next 10 years. 10 years of MER's at 2.5% and up is significant. If the average investor would read this guy
http://en.wikipedia.org/wiki/William_J._Bernstein they would see how easy it is and how boring and un-emotional investing can be. ETF's are as boring (transparent) as it gets! 60-40 for most people and forget about it...the costs of acquiring ETF's are not an issue and that is why people are flocking to them....ETF's have become favorites of hedge fund managers to day traders who like to pull the trigger frequently but this doesn't have to be the case and ETF's are the cheapest way to outperform the ponzies. It takes the Goldmans etc. right out of the picture. Look at billions that Lehman had guaranteed in funds (100% principal protected) that evaporated and investors were left with nothing. The SEC will take care of Goldman and Jake Zamansky, Lehman
http://www.seclaw.com/docs/LehmanPri...Litigation.htm
Even here in Canada, Manulife got into big trouble because they forgot to hedge and the stock price has been reflecting that. As much as MER's are a factor people also need to make sure the financial instituion they are investing in knows what they are doing and they aren't going to default on them. If you can't DIY then ETF's are the lowest risk way to be diversified in the market imo. The average MER of the average ETF is 12 times lower then the average MER of the average mutual fund in Canada today. 12 X. There was a "couch potato" in this thread and im sure he sleeps well at night. Use a process and avoid chasing product.