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Yikes! Are there really index funds with 1% expense ratios? I think my Vanguard funds are all under 0.2%, some way under. (I've got the impression that Vanguard
by Steuard 10y ago
Yikes! Are there really index funds with 1% expense ratios? I think my Vanguard funds are all under 0.2%, some way under. (I've got the impression that Vanguard's ETF expense ratios are similar or identical to the corresponding fund expense ratios.)
Thanks for the overview. I'd heard about the constant trading difference before (I've tended not to think about it, since I'm a buy-and-hold-for-years type). Do you have a sense of how much cost winds up being associated with broker commissions and/or the buy-ask spread? I hadn't been aware of the simpler capital gains situation (thus far, I've just blindly copied down whatever's summarized on the year-end tax statement they provide onto my IRS forms).
- plandis 10y agoVanguards ETF expense ratios seem to be slightly lower than/on par with the admiral type funds from my experience.
- tanderson92 10y agoVanguard ETF expense ratios are almost always^* exactly equal to the corresponding admiral type funds. The reason is because Vanguard holds a patent on the dual-share class[1] idea, where the ETF and admiral share mutual fund are precisely the same fund. *: The exceptions tend to be new-ish funds which are less liquid and have purchase costs on the mutual fund side. I haven't seen more than one or two of these recently. [1]: http://www.ft.com/cms/s/0/3e0cc962-ec0c-11e4-b428-00144feab7de.html http://www.ft.com/cms/s/0/3e0cc962-ec0c-11e4-b428-00144feab7...