Quote:
Originally Posted by mb914
I was thinking about investing in an etf, but I want to keep contributing to my account, and I don't want the fees to overwhelm me. Are the index funds really tax-inefficient?
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You're correct that an ETF isn't the best option for regular investing because there is a commission on every purchase, unlike a mutual fund that has no transaction fees.
Index funds are tax efficient since they don't do much trading. ETFs are even more tax efficient, but for most people, the index fund is the way to go, especially when you are just starting out.