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Old 09-12-2007, 09:06 PM   #1
drb111
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American Funds (without 5.75% sales load) vs. Vanguard?

If you could invest in the American Funds at NAV...would you put your $$ there or in Vanguard Index funds?

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Old 09-12-2007, 09:11 PM   #2
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I'd probably still go with Vanguard because of their rock bottom expense ratios...
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Old 09-12-2007, 09:36 PM   #3
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Vanguard without a doubt. I think any American fund that has done better than its benchmark is because it cheats. For example, maybe a fund is large cap and beats the S&P500 but only because the fund also holds some foreign large cap.
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Old 09-13-2007, 02:53 AM   #4
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VG. No question about it. Consider others if there is not a similar investment via VG or low-cost ETF.

Ask yourself the opposite question Why would I buy fund x from company y instead of a similar fund at VG?
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Old 09-13-2007, 09:28 AM   #5
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Quote:
Originally Posted by drb111 View Post
If you could invest in the American Funds at NAV...would you put your $$ there or in Vanguard Index funds?
Thx
That's where my MF are, and I am able to buy at NAV. I really don't care if American Funds "cheats" by going to cash in bad markets or that some of their funds don't "mirror" an index, because that's what index funds are for. In market downturns, I have done substantially better than VG, in bull markets, everyone makes money.........

I use ETF's to buy whatever "index" I want in my taxable accounts. I am sure I am in the minority on here who can say that.............

Nothing wrong with being a Boglehead........
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Old 09-13-2007, 10:32 PM   #6
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Old 09-14-2007, 07:45 AM   #7
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Where can one buy into American Funds wo the load?

A neighbor is an Edward Jones rep ... came and pitched me (suit n'all) to switch my 401k over to American. Told him the load was a killer ... buuut if he could show me how much better I'ld do ... (gave him my Fidelity fund names).

He never came back.
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Old 09-14-2007, 09:46 AM   #8
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[quote=tryan;556080]Where can one buy into American Funds wo the load? ]/quote]

Well, I am an advisor, so I that's why............

Quote:
Told him the load was a killer ... buuut if he could show me how much better I'ld do ... (gave him my Fidelity fund names)
To me, FIDO are the biggest hypocrites out there. They have a huge no-load arm, and then they try to sweet-talk advisors like me into using their loaded Fidelity Advisor funds. However, they give us no support and act like they're doing us a favor for using them.........

At least Vanguard has ONE business model..........
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