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I want to regularly deposit small sums of money in an investment. Is an exchange-traded fund a good idea for small amounts?

Last Updated: March 26, 2008

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Because of the transaction costs (e.g., brokerage fees) that must be paid when purchasing exchange-traded funds (ETFs), it is probably a good idea to purchase them only with large, infrequent, lump sum dollar amounts. If you want to regularly deposit small amounts, look for a no-load mutual fund that accepts small deposits. We would like your feedback on this Personal Finance Frequently Asked Question.

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