Index Mutual Funds & Spiders (SPY, DIA etc.)
- KirkL
- PualH
- Karin1
- RandeS
- RandeS
- Thruhiker
- KirkL
- DennisL
- BillR_5
- Thruhiker
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» Karin1 - expense ratio
The prospectus for the Wilshire 5000 fund states: $1000 investment, assuming (1) 5% annual return and (2) redemption at the end of each time period:1 year $6.00. That sounds a lot better than $55. Do I need a lesson 101 on understanding expense ratios?
Karin1
-- posted by Karin1
» RandeS - Actually, Karin, that supports Kirk's assertion that the total
Actually, Karin, that supports Kirk's assertion that the total expense ratio is 55bp and I stand corrected (to excuse myself, I haven't really taken a close look at this fund yet). Here's how it works:$1000 grows by 5%, so the year-end balance will be $1050. If you divide $6 by $1050, you get .0057, or 57bp. (Expenses are deducted from the NAV on a daily basis, but that's close enough). $55 in expenses on $1000 would be 5.5%, definitely outrageous and unheard of in terms of annual expenses.
-- posted by RandeS
» Thruhiker - PAULS QUESTION
Paul, when the Schwab 1000 account balance hits 50K, you need to tell Schwab that you want to convert from the Investor to the Select shares. This conversion is NOT a taxable event.Minimum deposits into the Select are 1K (which is why some people may not wish to convert).
-- posted by Thruhiker
» KirkL - MutualFundComparison.doc
Vanguard:VTSMX 0.20% min=$3,000 IRA=$1000 add=$100
VFINX 0.19% min=$3,000 IRA=$1000 add=$100
Fidelity:
FSTMX 0.25%
FUSEX 0.20% min=$100,000 add=$2500
Schwab1000
SNXFX 0.55% min=$1,000 IRA=$500 add=$100
http://biz.yahoo.com/p/s/snxfx.html
Schwab1000 Select
SNXSX 0.35% min=$50,000
Wilshire5000
????? 0.55% min=$1,000
Calif Investment Trust S&P500 Index Fund
SPFIX 0.20% min=$5,000 IRA=$5000 add=$250
http://quote.yahoo.com/q?s=spfix&d=t
(Slightly outperforms 500 index, less built in cap gains than others)
Contact "Steve Rogers" mailto:ccm@netwiz.net for prospectus
Tell Steve "Kirk sent you for a free audio tape on Index Investing"
Note to BOWG stockholders…. my first try as an "infomediary"
Annual Expense Amount - With 0.20% - With 0.55%
$1,000 -------- $2 -------------$5.50
$10,000 ------ $20 ---------- $55
$100,000 ---- $200 ---------- $550
$1,000,000 - $2,000 -------- $5,500
Date: 3/30/99
Filename: D:\Data\Word\Business\Investment Writing\Mutual Fund Comparison.doc
-- posted by KirkL
» DennisL - Calif. Investment Trust S&P 500 Index Fund
Glad to see someone mention the CIT S&P 500 index fund in the general discussion of index funds. This is one fund that I have owned for several years, and I am very happy with it. Performance is good and CIT's service at its toll-free telephone number is good, too. You can complete most ordinary transactions over the phone. What I like best is that when you call, a live human being answers--none of those goddamn automated phone trees that are such a pain in the ass to deal with.-- posted by DennisL
» Thruhiker - Index Funds -- Schwab vs Vanguard
For those contemplating that first index fund purchase decision, there is more to consider than just the expense ratio:As previously pointed out, Vanguard has the lowest expense ratios.
Schwab expense ratios, while competive with Vanguard, are currently subsidized. How long Schwab will continue this subsidy is anyones guess. Expense ratios will increase when the subsidy is discontinued.
Schwab has brick and mortar buildings you can visit. Facilitates making deposits, resolution of problems, obtaining written info, etc.
Index funds are tax efficent by nature; but Schwab takes this a step furthur by varying from the index to avoid capital gains distributions. Schwab has never passed along a capital gains distribution.
Want to move money from a index fund in a taxable account to another fund? Call or click Schwab. Vanguard makes you write a letter.
Do you already have an account with Vanguard or Schwab? If so, do you really want to open "another" account with the other one?
There is no "correct" answer here. Schwab and Vanguard each have advantages and disadvantages.
-- posted by Thruhiker
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