Beloved spouse would like to know--after the new year we would be in the position of reinvesting some things that are maturing. What are the advantages of going with Admiral shares of Vanguard as opposed to the less than 100K version of the same funds? They seem to have a fractional better yield, but anything else? Thanks.
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I'm pretty sure the only difference is the Admiral shares have lower expenses so they will give you a slightly better return. I'd recommend converting them if you can.
If you have Investors shares and then go above the threshold for Admiral then a few weeks later they should convert to Admiral as there is no difference except for the slightly lower fees. (at least that is what happened for me a few years back)
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The 1 year "return after taxes on distribution" for Investor shares of Vanguard's Total Stock Market Index fund was 3.50%; for Admiral shares it was 3.64%. Admiral shares requires a minimum investment of $10,000 vs $3000 for Investor shares.
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Just compare the return of the Adimral vs Investor class. The amount of difference usually equals the difference is ER. Nothing else. Most of the index funds now have minimum of 10k for Admiral shares while the active funds are typically 50k. A good deal either way.
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