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I_H8_Crawford · 05-03-2012, 01:21 PM

So my girlfriend has been teaching me about investing since she is really into finance, and one of the things she has taught me about it MERs. (http://vixmoney.com/management-expense-ratios-mers)

After looking at Mutual Funds, the MERs are INSANELY high compared to ETFs, and as far as I understand, you can build a portfolio of ETFs to mirror virtually any Mutual Fund out there, with the added benefit of paying a significantly lower MER.

So, does anyone know why people routinely choose Mutual Funds? Are there any reasons to choose Mutual Funds over ETFs?

Or is it just a case of the average consumer doesn't know/care, and goes with what they are told by their bank/advisor (who makes more money of Mutual Funds than ETFs)?

05-03-2012, 01:21 PM	#1
I_H8_Crawford Franchise Player Join Date: Apr 2004 Location: Calgary Exp:	Mutual Funds vs ETFs So my girlfriend has been teaching me about investing since she is really into finance, and one of the things she has taught me about it MERs. (http://vixmoney.com/management-expense-ratios-mers) After looking at Mutual Funds, the MERs are INSANELY high compared to ETFs, and as far as I understand, you can build a portfolio of ETFs to mirror virtually any Mutual Fund out there, with the added benefit of paying a significantly lower MER. So, does anyone know why people routinely choose Mutual Funds? Are there any reasons to choose Mutual Funds over ETFs? Or is it just a case of the average consumer doesn't know/care, and goes with what they are told by their bank/advisor (who makes more money of Mutual Funds than ETFs)?