Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Cost of diversification
Old 05-28-2004, 08:14 AM   #1
Recycles dryer sheets
Join Date: Jul 2003
Posts: 70
Cost of diversification

Another thread referred to the following article on developing an "Ultimate Buy and Hold Strategy".

They suggest several mutual fund combinations, including international funds.

The expense ratio for the vanguard international fund VINEX is about 0.73%, in contrast to about 0.13% on VTGLX (large cap).

My question is: Is it worth it to sacrafice about 0.6%, which is considerable if one is entertainging a withdrawal rate of about 2 to 3%?


amt is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Cost of diversification
Old 05-28-2004, 09:36 AM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,664
Re: Cost of diversification

Since these funds address different aspects of the total market (growth/Inc US stocks vs. international small cap) comparison seems to be apples v. oranges.

I believe that both funds are managed not index. Perhaps a better international (lower ER) might be Total Int. Stk. Index fund (VGTSX) with a .36 ER.

Also VTGLX is an "Admiral" fund requiring at least $250K investment to get the .11 ER (not .13 as stated).


Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is offline   Reply With Quote
Re: Cost of diversification
Old 05-28-2004, 08:11 PM   #3
Recycles dryer sheets
Join Date: Nov 2002
Posts: 373
Re: Cost of diversification

Look for me at: 29.5776N 98.5694W
Is that the north side of Fig Tree Woods?
wzd is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
The REAL Cost of Healthcare Premium Caps ScaredtoQuit FIRE and Money 25 06-18-2007 07:46 PM
Cost of kids accountingsucks Young Dreamers 24 06-21-2006 06:37 AM
Cost of diversification Boltsfan FIRE and Money 8 05-08-2006 05:52 PM
Global vs local diversification donheff FIRE and Money 2 04-28-2006 05:10 AM
Low cost funds into ETFs? Olav23 FIRE and Money 26 07-06-2005 09:42 PM


All times are GMT -6. The time now is 04:52 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.