So you have a client that wants to know what’s better, ETFs or mutual funds. What do you tell them?
You might be able to find which option is best for a given investor’s portfolio more easily with the help of a new online tool recently introduced by Rydex Investments.
The Rydex calculator prompts advisors to enter all aspects that could affect their costs — such as number of trades, holding period, transaction/commission costs, annual expense ratio, share price and bid/ask spreads — to see which investment vehicle (ETF or mutual fund) might be most suitable in a given situation.
“We’ve heard from our advisor clients that as ETFs have become increasingly popular, financial advisors need a way to evaluate which investment structure is best for particular situations,” explains Kevin McGovern, vice president of business development.
The online tool can be found on the Rydex Investments financial professional web site at rydexfundsfp.com.
RON DELEGGE is editor of www.etfguide.com.