HAP comes out ahead on price, charging a 0.65% expense ratio. FFGCX, being actively managed, charges a 1.42% expense ratio. If you intend to hold it less than 30 days, you’ll be dinged a 1% short-term trading fee on top of that. Ouch. [ETFs vs. Mutual Funds.]
Where FFGCX does come out ahead is on flexibility. With a passive ETF like HAP, the holdings are the holdings. If one or two shares are underperforming, they still remain. Active management in the mutual fund leaves in the option to eliminate or reduce exposure. But is that worth the hefty price tag?
For more stories about mutual funds, visit our mutual find category.
Tisha Guerrero contributed to this article.