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Vanguard ?
Old 08-23-2012, 01:22 PM   #1
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Vanguard ?

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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Old 08-23-2012, 01:29 PM   #2
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The management fee is slightly less meaning that the return will be higher than the Investor Class shares
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Old 08-23-2012, 01:30 PM   #3
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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.
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Old 08-23-2012, 01:30 PM   #4
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Also, most have lowered their minimum...

Or maybe that is if you have owned the shares for a long time...
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Old 08-23-2012, 01:32 PM   #5
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I think they lowered the minimums for the admiral shares to 10K for index and 50K for actively managed

https://personal.vanguard.com/us/con...verviewJSP.jsp
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Old 08-23-2012, 01:34 PM   #6
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Quote:
Originally Posted by David1961 View Post
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.
+1

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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Old 08-23-2012, 02:23 PM   #7
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Also, Admiral sounds a lot fancier .
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Old 08-23-2012, 03:52 PM   #8
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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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Old 08-23-2012, 03:56 PM   #9
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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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