Mutual Fund or ETF in taxable?

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
Callalily
Posts: 32
Joined: Wed Dec 16, 2009 11:42 am

Mutual Fund or ETF in taxable?

Post by Callalily »

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?
User avatar
Boglenaut
Posts: 3508
Joined: Mon Mar 23, 2009 7:41 pm

Re: Mutual Fund or ETF in taxable?

Post by Boglenaut »

You're going to hear both views. It's largly a matter of personal preference.

I'd do the Admiral shares.
User avatar
Boglenaut
Posts: 3508
Joined: Mon Mar 23, 2009 7:41 pm

Re: Mutual Fund or ETF in taxable?

Post by Boglenaut »

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...
livesoft
Posts: 85971
Joined: Thu Mar 01, 2007 7:00 pm

Re: Mutual Fund or ETF in taxable?

Post by livesoft »

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?
No, one share class is not better than the other. See, for example, Wiki article link: ETFs vs Mutual Funds
Wiki This signature message sponsored by sscritic: Learn to fish.
jlg
Posts: 71
Joined: Fri Apr 22, 2011 7:45 am

Re: Mutual Fund or ETF in taxable?

Post by jlg »

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?
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.
Topic Author
Callalily
Posts: 32
Joined: Wed Dec 16, 2009 11:42 am

Re: Mutual Fund or ETF in taxable?

Post by Callalily »

Thanks! I didn't know that.
Post Reply