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Cost of diversification
Old 05-28-2004, 09:14 AM   #1
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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%?


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Re: Cost of diversification
Old 05-28-2004, 10:36 AM   #2
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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).


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Re: Cost of diversification
Old 05-28-2004, 09:11 PM   #3
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Re: Cost of diversification

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