|
08-17-2012, 10:16 AM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,113
|
VIG vs VDIGX
We are with Fidelity so I pay $75 to buy VDIGX, $6.75 to buy VIG. Investment will be in a Roth, likely untouched for 10+ years. Which would be wiser? I can't find a Fidelity no-transaction-fund equivalent.
__________________
Duck bjorn.
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
08-17-2012, 10:42 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
|
Can you automatically reinvest dividends in VIG with no fee?
__________________
Retired since summer 1999.
|
|
|
08-17-2012, 11:34 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,113
|
Good question. I know that Fidelity reinvests dividends for stocks but I looked on the Boggleheads Forum where one poster wrote that Vanguard does not do that for their ETFs held at other investment houses. If that is true the mutual fund is better for the long term.
__________________
Duck bjorn.
|
|
|
08-17-2012, 12:04 PM
|
#4
|
Full time employment: Posting here.
Join Date: May 2005
Location: Atlanta suburbs
Posts: 900
|
Quote:
Originally Posted by Brat
Good question. I know that Fidelity reinvests dividends for stocks but I looked on the Boggleheads Forum where one poster wrote that Vanguard does not do that for their ETFs held at other investment houses. If that is true the mutual fund is better for the long term.
|
Hmm,
Schwab lets me reinvest Dividends and capital gains of VNQ and VTI in my IRAs
Maybe it's broker dependent and not necessary mandated by Vanguard?
Ask your broker.
|
|
|
08-17-2012, 01:50 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
|
Other than account proliferation, why not buy direct from Vanguard for free?
|
|
|
08-17-2012, 03:19 PM
|
#6
|
Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
|
Quote:
Originally Posted by Brat
We are with Fidelity so I pay $75 to buy VDIGX, $6.75 to buy VIG. Investment will be in a Roth, likely untouched for 10+ years. Which would be wiser? I can't find a Fidelity no-transaction-fund equivalent.
|
VDIGX has a different composition than VIG, with a lower beta. GMO research suggests that the lower beta is a higher quality investment and will outperform over the long run. Depending on how much you invest VDIGX might be a better investment once the $68 difference in fee is offset.
|
|
|
08-17-2012, 09:03 PM
|
#7
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 7,113
|
I've got about $80T to throw at this puppy. ETFs still bother me because i can't figure out how they hold title to stocks. The mutual fund may be the wisest.
We have always been Fidelity investors because of the availability of their investor centers. Husband and I don't use them much but they have been lifesavers when dealing with our parents estates. That is worth the $75 investment fee as eventually our kids will need to deal with our investments in turn.
__________________
Duck bjorn.
|
|
|
08-18-2012, 06:12 AM
|
#8
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
|
Quote:
Originally Posted by Brat
......ETFs still bother me because i can't figure out how they hold title to stocks. ....
|
Isn't it the exact same as a mutual fund in that the fund itself is the owner of the individual stocks?
The difference is on the capital side - in the case of a mutual fund the stock of the fund (the fund shares you own) are not traded on an exchange but with the fund itself and in the case of the ETF the stock of the ETF is publicly traded like an individual stock.
To me it is no different than if a publicly traded company's "business" was investing and passing the investment performance (net of fees and expenses) of the investment portfolio through to its owners (other than a lack of corporate income taxes).
|
|
|
08-18-2012, 09:11 AM
|
#9
|
Thinks s/he gets paid by the post
Join Date: May 2008
Location: Cooksburg,PA
Posts: 1,873
|
I have $ with Fidelity.
I have an ETF and they do not charge me to reinvest dividends (unless I missed it).
With the $75, you do not pay to cash out a portion or all of it. With ETFs you pay going in and when you cash out. If you wish to pull out a little for rebalancing etc, you pay the $6.75 for each occurrance.
__________________
Free to canoe
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|