Radical Guide to Investing: ETFs Are Cheaper Than Vanguard Index Funds

This guide has moved, and is now The ETF Investment Guide at Seeking Alpha.com.

June 1, 2005 | Permalink


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The statement that Vanguard is more expensive than ETFs is not true if you are able to use Vanguard's Admiral funds.
As an example the 500 Index Admiral expense ratio is .09.

This is especially true for their international funds. I've found that many of the international equity ETF's have an egregiously expensive fee structure. Vanguard Pacific Admiral fund expenses are .25 %; go find anything cheaper!

Posted by: RichL | Jun 11, 2005 5:55:26 PM

Correct me if I'm wrong, but the total portfolio expense ratio difference of 0.05% seems pretty neglible. According to my calculations, the difference in value between a portfolio earning 10% and one earning 10.05% is only 2.3% after 50 years.

Although it is true that 0.21 is 18% less than 0.26, by stating it that way you seem to be trying to make a mountain out of a rather small mole hill.


Posted by: Dean Brettle | Jun 27, 2006 1:43:11 AM

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