I am in the process of changing some of my equity investments from regular mutual funds to ETF’s. The following are the ETF’s I am considering for my large cap, small cap and international allocations.
For my domestic large cap allocation I am considering the following:
Vanguard Value (VTV) expense ratio .11
Or
I-Shares Dow Jones Select Dividend (DVY), expense ratio .40
For my small cap allocation I am considering the following:
Vanguard Small Cap Value (VBR) expense ratio .11
Or
I-Shares S&P 600 Small Cap Value Index (IJS) expense ratio .25
For my International Large Cap allocation I am considering the following:
Vanguard FTSE All World Ex-US (VEU) expense ratio .25
Or
Power Shares International Achiever (PID) expense ratio .65
I tend to lean towards value. Typically I go with low cost when selecting funds everything else being equal. What I am struggling with here is whether I reasonably can expect a better return and smoother ride to justify the higher expense of going with I-Shares and Power Shares fundamental approach versus Vanguards generally accepted approach of cap weighting index. I guess I could split the difference but in the interest of simplicity I want to stick with one ETF for each allocation
At the risk of being accused of polling the audience, I would appreciate the forum’s feedback on which way I should go and why.
Thanks
For my domestic large cap allocation I am considering the following:
Vanguard Value (VTV) expense ratio .11
Or
I-Shares Dow Jones Select Dividend (DVY), expense ratio .40
For my small cap allocation I am considering the following:
Vanguard Small Cap Value (VBR) expense ratio .11
Or
I-Shares S&P 600 Small Cap Value Index (IJS) expense ratio .25
For my International Large Cap allocation I am considering the following:
Vanguard FTSE All World Ex-US (VEU) expense ratio .25
Or
Power Shares International Achiever (PID) expense ratio .65
I tend to lean towards value. Typically I go with low cost when selecting funds everything else being equal. What I am struggling with here is whether I reasonably can expect a better return and smoother ride to justify the higher expense of going with I-Shares and Power Shares fundamental approach versus Vanguards generally accepted approach of cap weighting index. I guess I could split the difference but in the interest of simplicity I want to stick with one ETF for each allocation
At the risk of being accused of polling the audience, I would appreciate the forum’s feedback on which way I should go and why.
Thanks