I intend to purchase either the admiral share mutual fund or the ETF of:
- Vanguard 500 index
- Vanguard Extended Market
Is one share class better than the other?
Mutual Fund or ETF in taxable?
Re: Mutual Fund or ETF in taxable?
You're going to hear both views. It's largly a matter of personal preference.
I'd do the Admiral shares.
I'd do the Admiral shares.
Re: Mutual Fund or ETF in taxable?
Callalily wrote:I intend to purchase either the admiral share mutual fund or the ETF of:
- Vanguard 500 index
- Vanguard Extended Market
Is one share class better than the other?
But why not buy Total Market? Unless you are tilting and the tilt amount won't be enough for admiral...
Re: Mutual Fund or ETF in taxable?
No, one share class is not better than the other. See, for example, Wiki article link: ETFs vs Mutual FundsCallalily wrote:I intend to purchase either the admiral share mutual fund or the ETF of:
- Vanguard 500 index
- Vanguard Extended Market
Is one share class better than the other?
Re: Mutual Fund or ETF in taxable?
It has been said here before by folks more knowledgeable than me ... The construction of the Extended Market Index makes it rather tax inefficient and is not suitable for a taxable account. I hold Vanguard Extended Market Index Admiral shares in my IRA (to complement the S&P 500 index that I hold in my 401k.) In taxable I hold Total Market Index and Vanguard Tax Managed Small Cap.Callalily wrote:I intend to purchase either the admiral share mutual fund or the ETF of:
- Vanguard 500 index
- Vanguard Extended Market
Is one share class better than the other?
Re: Mutual Fund or ETF in taxable?
Thanks! I didn't know that.