merlin3942
Recycles dryer sheets
- Joined
- Jun 9, 2014
- Messages
- 67
Looking ahead to FIRE'ing in a couple of months (if I don't chicken out and give into OMY syndrome .... ;-) ). At that point, I'll be converting my 401K to an (self-directed) IRA, and have decided to go with the "lazy" 3-fund portfolio (well, I may add some REIT fund to that as well). Anyway, I don't think I've ever really understood the difference between a regular "index fund" (such as Vanguard's VTSMX) and an ETF fund (such as Vanguard's equivalent VTI). VTSMX has an E.R. of 0.17%, whereas ETF has an E.R. of .01% ... but I would qualify for so-called "Admiral shares" of VTSMX, which also has an E.R. of .01%.
If they are basically the same portfolio, why are the E.R. different? (why would ANYONE pay that higher E.R. for VTSMX?)
I don't have an account at Vanguard, if that makes any difference - will be buying this through an outside brokerage account (TIAA-CREF), which charges a flat $7.95 brokerage fee.
So ... is there any advantage to VTI vs "Admiral shares" of VTSMX?
If they are basically the same portfolio, why are the E.R. different? (why would ANYONE pay that higher E.R. for VTSMX?)
I don't have an account at Vanguard, if that makes any difference - will be buying this through an outside brokerage account (TIAA-CREF), which charges a flat $7.95 brokerage fee.
So ... is there any advantage to VTI vs "Admiral shares" of VTSMX?