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You are implying that Vanguard takes 1%. It's under 0.14% for the Total Stock index, which broadly goes f or marketcap weighted US stocks. If the DAFs broker ta
by namibj 8y ago
You are implying that Vanguard takes 1%. It's under 0.14% for the Total Stock index, which broadly goes f or marketcap weighted US stocks. If the DAFs broker takes that much of a premium, they have the wrong broker. E.g. at the volumes you are talking about, Motif Investing seems to have significantly lower costs.
Please don't think that these are what you should choose, they are just an example for what I'd potentially (depending on what the specific goals are) choose if I'd be running a DAF in the US.
- russnewcomer 8y agoGoing by this : https://www.philanthropy.com/article/What-Donor-Advised-Funds/156495 https://www.philanthropy.com/article/What-Donor-Advised-Fund... it looks like average fees are around 1% for DAFs. Vanguard is cheaper, at .6 percent, but the SVCF, referenced in the article, is at 1%.
- namibj 8y agoYes, the average investor get's sold relatively expensive funds. Yes they are different, but there are strategies like GDP-weighting that offset most of the benefits. As in, the returns of GDP-weighted Worldwide stock are much closer to a good manual fund, when compared to a simple marketcap-weighted fund encompassing the same stocks.
- MichaelDickens 8y agoVanguard Charitable charges a 0.6% management fee* on top of the mutual fund fees: https://www.vanguardcharitable.org/individuals/fees_and_expenses https://www.vanguardcharitable.org/individuals/fees_and_expe... *assuming you have <$500K
- namibj 8y agoYes, and I did not mention Vanguard as a broker, due to them not being nice fee-wise for small fish.