One of the benefits of mutual funds over ETFs is that you can buy value instead of needing to afford an entire share. So, for instance, I can get $50 per month of an S&P 500 mutual fund like VFINX, but if I wanted to buy VOO, I'd have to wait until I had nearly $300 to buy a whole share, the current price.
Now that a few brokerage services like Cash App and Robinhood (at some point in the near future) are offering the option to buy fractional shares of stocks, including ETFs, would it make sense to simply buy fixed amounts of fractional shares of index-tracking ETFs? In other woulds, since I prefer ETFs over mutual funds for their tax efficiency, are there any downsides to simply getting $50 of fractional shares of VOO each month instead of $50 of VFINX?
Submitted December 25, 2019 at 10:58PM by elparay https://ift.tt/2rr0xmk
