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> But then it's not a one time-fee. I meant one time per line, not per portfolio. > it doesn't scale down. It scales down just fine if you're willing to acce
by grondilu 10y ago
> But then it's not a one time-fee.
I meant one time per line, not per portfolio.
> it doesn't scale down.
It scales down just fine if you're willing to accept that you're going to pay a lot in broker fees, with the only consolation that you'll pay them only once per line in your portfolio.
If you have say 500 stocks and pay like $10 in broker fees per stock, in the end you'll pay $5000. That's not the end of the world for a long term investment.
- icebraining 10y agoAt a 0.05% expense ratio, you need to hold $250k for 40 years to pay $5000, not to mention the extra fees if you want to rebalance as the market changes. It doesn't seem to make sense for lower-end investors, which are many of us.
- jonknee 10y ago> If you have say 500 stocks and pay like $10 in broker fees per stock, in the end you'll pay $5000. That's not the end of the world for a long term investment. If you only buy each stock one time. Which is absurd if you want a balanced portfolio you would need to buy a little bit of all 500 stocks a lot of times. A ETF lets you do this cheaply.