VB (Vanguard Small Cap ETF)
VNQ (REIT ETF)
BND (Total Bond Market)
With $3,000 to go into each, is it worth the extra expense to buy at investor shares vs ETF?
There are many reasons why one might want and prefer to use the investor share class of mutual funds vs. an ETF, but I don't believe there is a specific advantage to use the mutual fund that would warrant the higher expense ratio. Personally however I would prefer the mutual fund even at the higher ER. I also know that when the fund balance grows to $10K it will convert to Admiral class with an ER the same as the ETF.
For more information you might look at the wiki sections on ETFs - https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds or https://www.bogleheads.org/wiki/Exchange-traded_fund
1. I'd be close to my desired allocation.
2. I'd always have a fund to add the odd dollars and cents to.
3. Total Bond has the small ER difference between the ETF/Admiral and Investor shares (10 bp vs 12 bp or 14 bp).
4. I prefer bond mutual fund shares.
Therefore, you should make your choice of mutual fund vs. ETF on grounds other than expenses.
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