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ETF Specialist

Using ETFs to Mimic Mutual Fund Managers' Ideas

How to use ETFs to implement fund managers' current ideas at lower costs.

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In the investment world, some active mutual fund managers are treated like sages--and sometimes rightly so, given the incredible returns some have been able to rack up over extended periods.

However, those returns do come at a cost to investors: Typical mutual fund expense ratios range from 1.2% to 1.7%, and even institutional mutual fund expense ratios range from 0.5% to 0.8%. Are there ways for a cost-conscious investor--already smarting from the S&P 500's 3% decline so far in 2010--to play some of the investment themes that smart active fund managers are promoting these days, but for a fraction of the cost?

Robert Goldsborough does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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