Vanguard adding commission free index funds, better core replacements?

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bigROI
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Vanguard adding commission free index funds, better core replacements?

Post by bigROI » Fri Sep 07, 2018 9:04 am

With vanguard adding commission free index funds do you think there are better core replacements?
List
https://personal.vanguard.com/pdf/etfcfl.pdf

Looking are replacing
VTI - SCHB or IW?
https://www.morningstar.com/etfs/arcx/vti/quote.html
https://www.morningstar.com/etfs/arcx/schb/quote.html <-- .01 less ER

VXUS - SCHF
https://www.morningstar.com/etfs/xnas/vxus/quote.html
https://www.morningstar.com/etfs/arcx/schf/quote.html <-- .05% less ER

BND - SCHZ
https://www.morningstar.com/etfs/arcx/bnd/quote.html
https://www.morningstar.com/etfs/arcx/schz/quote.html <-- .01 less ER

BNDX - cant find one better yet, may be the ideal International bond index fund at this time
https://www.morningstar.com/etfs/xnas/bndx/quote.html

Please share any others people have liked, Ishares, Fidelity ect...

Or have others just stuck with the Vanguard options for now? It looks like some of the Schwab funds are better rated and have a lower ER for what that is worth. Thanks sharing others or opinion.
A penny saved is much more then a penny earned when you consider the tax/SS/medicare cut.

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mhc
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Re: Vanguard adding commission free index funds, better core replacements?

Post by mhc » Fri Sep 07, 2018 9:14 am

I currently do not have any ETFs, and the funds in my taxable account have too much unrealized gains to switch them.

If I was going to consider switching, I would look at ER, tax efficiency, and typical bid/ask spreads. I would not only look at ER. There are probably other things to consider also.

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David Jay
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Re: Vanguard adding commission free index funds, better core replacements?

Post by David Jay » Fri Sep 07, 2018 9:14 am

Note that these are ETFs, not Mutual Funds. Be sure you understand the difference and are comfortable with market orders.

Wiki link: https://www.bogleheads.org/wiki/ETFs_vs_mutual_funds
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HEDGEFUNDIE
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Re: Vanguard adding commission free index funds, better core replacements?

Post by HEDGEFUNDIE » Fri Sep 07, 2018 9:27 am

Where I prefer non-Vanguard ETFs:

IJR > VIOO, VB
ISCF > VSS
HEEM > VWO

Where Vanguard holds its own:

VFMO > MTUM
VT > ACWI

ER is one of many reasons why (and perhaps the least important reason)
Last edited by HEDGEFUNDIE on Fri Sep 07, 2018 9:34 am, edited 1 time in total.

asif408
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Re: Vanguard adding commission free index funds, better core replacements?

Post by asif408 » Fri Sep 07, 2018 9:27 am

Based on the last 3 years performance: http://quotes.morningstar.com/chart/etf ... 2%3A955%7D

I'll say no, they aren't better, but they also aren't worse. When you get down to comparing expense ratio differences between .01-.05 basis points, you're really reaching.

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Eric
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Re: Vanguard adding commission free index funds, better core replacements?

Post by Eric » Fri Sep 07, 2018 9:29 am

I don't use ETFs, but I like the fact that iShares Core Total USD Bond Market ETF (IUSB) follows a slightly broader bond market index that includes a small percentage of junk bonds.

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ruralavalon
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Re: Vanguard adding commission free index funds, better core replacements?

Post by ruralavalon » Fri Sep 07, 2018 4:22 pm

I don't use ETFs at all.

I am happy using Vanguard Total Stock Market Index Fund Admiral Shares, Vanguard Total International Stock Index Fund Admiral Shares, and Vanguard Intermediate-term Bond Index Fund Admiral Shares.

I don't think that these ETFs are better. But I am glad Vanguard has added these commission free ETFs (such as iShares, State Street, Schwab) for anyone interested in them.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

gostars
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Re: Vanguard adding commission free index funds, better core replacements?

Post by gostars » Fri Sep 07, 2018 6:41 pm

ITOT is another comparable to VTI and SCHB. IVV is an S&P 500 fund and is comparable to VOO/VFIAX.

SCHF is not a direct replacement for VXUS. SCHF is a developed market, large/mid-cap fund, so it excludes small caps and emerging markets, which explains the significantly lower ER. IXUS is the only low-cost direct competitor to VXUS.

AGG is another comparable to BND and SCHZ.

IAGG is comparable to BNDX.

There are also SSGA funds that are comparable to VTI and BND (SPTM and SPAB) but they aren't nearly as well traded as the Vanguard, iShares, and Schwab options.

A difference of .01% on the ER is basically a rounding error. IXUS has historically been slightly more tax efficient than VXUS, but otherwise there's really not a lot of difference in these classes.

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bigROI
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Re: Vanguard adding commission free index funds, better core replacements?

Post by bigROI » Thu Sep 13, 2018 2:20 pm

Thanks for the thoughts on the other funds. I will probably stay with the Vanguard selections for now unless I see something stand out. Some hedges in tech, med equity ect.. are mostly afforded by them as well with high quality options. I do think their precious metals and mining fund is not up to par so if I continue to look for something like that I will probably shop the list. It should be noted if you use or require any of the Voyager, Flagship ect... reduced cost or free services you need to have that level in Vanguard funds to qualify.
A penny saved is much more then a penny earned when you consider the tax/SS/medicare cut.

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