Dave Ramsey says: Should you exchange traded funds as investments?

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  • Max Charlotte, NC
    May 29, 2013 7:25 a.m.

    Dave is right about frequent trading but there is nothing about an ETF that forces you to buy and sell. I own ETFs and they are a great way to access the market and yes, like Dave, I am a buy and hold kind of guy. The advantages of ETF are that they have lower fees than mutual funds and they are more tax efficient than mutual funds. Also, if necessary, you can sell an ETF during trading hours if you had to (i.e. if the market was crashing). You can't do that with a mutual fund. You can only sell at the closing price for that day. Dave really misses the mark on this one.