Thursday, December 15, 2011

Can I switch between index funds and ETFs in my IRA without any negative consequences?

There are no tax consequences. However, are you aware that Vanguard ETFs are simply the same Vanguard mutual funds traded like shares of stock? The only advantage is that you can trade them more freely than Vanguard mutual funds and do intra-day trading. You will also pay a sales commission each time you make a trade.

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