Cost of diversification

[amt]

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

http://www.fundadvice.com/FEhtml/BHStrategies/0108/0108c.html


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

 

[mickeyd]

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).

 

[wzd]

Look for me at: 29.5776N 98.5694W

Is that the north side of Fig Tree Woods?