Right or wrong, I like dividend paying stocks. I have a vanguard dividend-focused index fund yielding 3% with a 0.2% expense ratio. With a hypothetical $1M in there, I'm getting $30k/year dividends and paying $2k in ER.
I could replicate the portfolio with individual stocks, maybe with 50 stocks, and pay $2/trade. If I buy every quarter, that's $400/year versus $2k. Plus I would have more control over recognizing capital gains (no mandatory capital gains distributions). Obviously the downside is more administrative work for myself.
Does this make sense or not worth the effort?
I could replicate the portfolio with individual stocks, maybe with 50 stocks, and pay $2/trade. If I buy every quarter, that's $400/year versus $2k. Plus I would have more control over recognizing capital gains (no mandatory capital gains distributions). Obviously the downside is more administrative work for myself.
Does this make sense or not worth the effort?