FinanceDude
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Aug 3, 2006
- Messages
- 12,483
FD, I'm just busting your chops. I know you are one of the good guy FA's, right? My comments are addressed towards the lumpen slums of FA's that sell load funds inside variable annuities inside IRAs.
Like the lumpen slums reference.........
SPY still has an ER that is 50% higher than VG's VOO. You'll only save $30 a year on a $100,000 position. And right now there is only a penny bid-ask spread (0.02%), and enough bid/ask size to handle at least $80,000 in one trade without moving the market. If I was in the market for some SP500 ETF, I would probably buy VOO. But I wouldn't worry about selling and paying cap gains on SPY to save a few bucks a year in expense ratio.
A little humor from the dark side. I was at an FA meeting in Chicago a few years ago. They had some guy talk as filler before Nick Murray was scheduled to speak. He talked about how low the ER ratios were at VG. I remember his quote clearly:
"Why of course their ER are low, they are index funds, it's not like their managers DO ANYTHING"!!!!