Bond Mutual Fund VBTLX or Schwab ETF SCHZ?

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Don46
Posts: 198
Joined: Sun Feb 24, 2013 5:53 pm

Bond Mutual Fund VBTLX or Schwab ETF SCHZ?

Post by Don46 »

I have a Tax Deferred (IRA) account I want to allocate to some fixed income mutual fund or ETF. I have about 1.2 million in this account. This is a Schwab account and have access to very low cost ETFs. Should I consider an ETF alternative to Vanguard Total Bond Admiral Shares VBTLX, perhaps Schwab U.S. Aggregate Bond ETF SCHZ? This is an intermediate term bond fund and not the same bond mix as VBTLX, I realize, but how would this work for me as a ballast and income for my overall portfolio?
MN Finance
Posts: 1926
Joined: Sat Dec 22, 2012 9:46 am

Re: Bond Mutual Fund VBTLX or Schwab ETF SCHZ?

Post by MN Finance »

I dont think it makes any difference. The funds are basically the same. With the ETF you have no trading costs but need to keep an eye on the spreads if you place a large trade. With the mutual fund you have trading costs but no spread issues.
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