Dave Ramsey Recommends Mutual Funds Over ETFs



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Comments

  1. And if you don't bounce in and out of an ETF? Just because you can doesn't mean you will. I certainly wouldn't without good reason.
  2. He's so cute. Buy the managed fund that in the future is going to outperform the market, and don't buy the managed fund that in the future is going to underperform the market. Gee, why didn't everyone else think of that?
  3. I disagree with Dave here. I use Acorns which does conservative ETF's and I have 3k invested. I have never invested before and Acorns is great. So, I do agree with Dave here.
  4. These statements are not only boastful, but baseless. Data have shown that index funds (or, E.T.F.s) typically beat actively-managed funds, largely because of the fees associated with the latter. I don't know which funds Dave Ramsay claims to have, but I'd be interested to find out; as well as to learn exactly what "method" Ramsay employs to seek out such items -- given it is "not rocket science."
  5. Dave is comparing apples to oranges. The real question that is being asked here is: if both an ETF and mutual fund were both held for 30 years (long-term) mirroring the same index (say the S&P 500), which one would do better? That is the real question and that is an apples to apples comparison.

    The answer: ETFs will outperform, in general, because ETFs have lower expense ratios. And why "in general?" Because some mutual funds (but very few) have expense ratios below that of ETFs; but the majority of cases, ETFs are cheaper than mutual funds.

    What sort of impact do fees have on investment portfolios? Enormous impact. Here's an example if you were to invest $10,000 today (March 2017), wait for 30 years and assume a 9% growth. One account has 0.10% annual fee and the other has 1.5% annual fee:

    0.10% fee: $1,462,092 total investment portfolio
    1.00% fee: $1,083,912 total investment portfolio

    In other words, you would have lost $378,180 in fees alone. There are tons of ETFs with super low fees (even lower than 0.10%) but very few mutual funds with that cheap of an expense ratio.
  6. mutual funds beat index funds? lolololol
  7. No difference between mutual fund and an etf based on an index? FEEEEEEEEEEES.
  8. Maybe because Dave makes money selling Mutual Funds with high commissions. That's why he recommends them, because he gains. Just listen to Dave until you get out of debt. Then switch to someone else.
  9. a lot of misinformation in this video. I don't even know where to begin..
  10. I love most of Dave's advice but I think this is one area that he drops the ball. A diversified portfolio of ETF's with low fees is the best way for a majority of people to invest. Lower fees. Lower tax implications (assuming it's in a taxable account), and you're guaranteed to get the same return as the market. The idea that there are mutual funds out there that consistently outperform the market in down years and up years is just false. If they did, everyone would buy them. Dave, please share the ticker symbols for these four mutual funds that you claim all out perform the market net of fees over a 10-20 year period.
  11. I have $5,000 to spend and I want to buy more mutual funds. Would it be better if I bought 5 seperate mutual funds for $1000 each, or 1 mutual fund for $5,000 or two different mutual funds for $2500? Thank you keep up the good videos!
  12. ETF is so you can buy into a fund at a lower entry point, say, $100. Many comparable mutual funds have a minimum of thousands of dollars.
    So, if you have very little to start with, an ETF is ideal. Not for 'timing the market' but to get you started for the long term, Dave.
  13. Hmmm , Dave reminds me of the recreation director on the Titanic. You can't borrow 2.4 Billion Dollars a day and survive. All this will not matter within the next few years. So , Invest in the Water , Food and Ammo index.
  14. third
  15. 2nd
  16. I have to respectfully disagree with you Dave.
    Based on data from 2014, 86% of active mutual funds Failed to beat the S&P 500 Index. And the ones that usually beat the index fail to beat it the next year. Also, using a Mutual Fund you run into tax consequences at year end due to trading they have done during the year which you have to file on your taxes.
    So in my honest opinion, your better off with a diversified ETF strategy and you add to those ETF's on "panic" sell-offs due to the crisis of the quarter it seems lately. Don't trade it, so you have no tax liability. Few examples are (S&P 500 Growth Fund) IVW, 10% energy allocation with (IYE) & (DVY) iShares Select Dividend stocks paying a nice dividend.
    Just keep averaging in on the dips every time we get another panic decline. Add in a few dividend paying stocks and your good to go. Keep it simple.
  17. First


Additional Information:

Visibility: 19487

Duration: 4m 29s

Rating: 159