Article: Buffett gives nod to index funds over ETFs

Marketwatch.com posted an article Buffett gives nod to index funds over ETFs yesterday, in which Warren Buffet and John Bogle expressed preference on index funds over ETFs because ETFs are easy to trade and investors are often tempted to do market timing and active trading. But if ETFs are not traded, “they can often match regular index funds”.

My favourite line from Warren Buffet: People ought to sit back and relax and keep accumulating over time. 😀

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2 responses to “Article: Buffett gives nod to index funds over ETFs

  1. But Buffet was referring to no-load index mutual fund, which we don’t have in Singapore.

    If Buffet were to put it in Singapore context, what would he say? Would he say the same?

  2. Hi Masindi,

    I don’t what Buffet would say. IMHO his point on keeping cost low in investing is valid in anywhere where simple maths hold true. In the article, he said, “If you have 2% a year of your funds being eaten up by fees you’re going to have a hard time matching an index fund in my view,”

    There are no no-load index mutual funds in Singapore. But by avoiding marketing timing and frequent trading, we still can control cost and the equally important emotion.

    Cheers.

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