Okay good to know, I will have to have a talk with him about how active he wants to be about managing it.I bleed maroon said:If it's truly invest-and-forget-it, it probably doesn't matter. Just minimize fees by choosing low expense ratios and always avoid transaction fees. I personally prefer ETFs, mainly due to being able to trade intraday, and for slightly more control of tax efficiency. You can also use advanced strategies, like writing covered calls on them to boost income.ClutchCityAg said:
My younger brother just graduated and got a new job with 401K matching (I told him always contribute the max), but he has also started a Fidelity account and was looking to put his idle cash to work.
For someone who will be very hands off and not check it often, would he be better off putting this in a mutual fund through fidelity or just buying shares of some solid ETFs? He wants to invest in tech and large caps so I was thinking maybe the ARK funds would be good for him?
I'm a fan of the ARK funds and their management philosophy, but they are actively managed and have a higher expense ratio. Worth it? Maybe, but that's a personal choice.
CrazyRichAg thanks for the tip on Vanguard
Let it ride