Since we are talking about ETFs and mutual funds, it would be an appropriate time to briefly tackle the subject of taxes. Mutual fund investors will be in for a surprise. Not only are funds down 30, 40% or more, poor investors will get a big, fat tax as well. Even if your growth fund lost money, you’ll owe taxes, something that wouldn’t happen with growth ETFs or most any ETFs.

For many, ignorance is bliss. Few will do something about it and join the movement towards ETFs away from mutual funds. Even though September saw ETF assets decline, the ICI reports net creation of $52 billion worth of ETFs This is outstanding and the largest number I remember seeing. Even though investors lose money everywhere (Russia ETF, Commodity ETFs, Energy ETFs, you name it) they’ve come to trust ETFs more. More power to you.