VTIAX vs VXUS

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alanf56
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VTIAX vs VXUS

Post by alanf56 » Thu Jan 26, 2012 8:18 am

I use a basic 4 fund approach at the moment and am going to add money to balance my International stock portion. Is there any advantage/disadvantage in using the ETF VXUS instead of adding to VTIAX?

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ejvyas
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Re: VTIAX vs VXUS

Post by ejvyas » Thu Jan 26, 2012 8:38 am

VTIAX has minimum of 10k and a redemption fee of 2% if held < 2 mos. But you can invest partials in VTIAX. Also you need a brokerage account for VXUS. I dont see any other differences. I made the decision to go with VTIAX when I was in similar situation :)

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SpringMan
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Re: VTIAX vs VXUS

Post by SpringMan » Thu Jan 26, 2012 8:56 am

The answer has more to do with ETFs vs Mutual Funds. See wiki link.
http://www.bogleheads.org/wiki/ETFs_vs_Mutual_Funds
Best Wishes, SpringMan

alanf56
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Re: VTIAX vs VXUS

Post by alanf56 » Thu Jan 26, 2012 9:13 am

I was thinking that the VXUS might have the advantage in that you can buy and see what the price is when you buy. This isn't that big of a deal I guess if it is just one purchase and the intent is to hold. I wonder if one can use the ETF to guestimate the price of the mutual fund at day's end? In other words if you look at the VXUS price and see it falling is that enough indication that VTIAX will be lower at the end of the day?

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SpringMan
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Re: VTIAX vs VXUS

Post by SpringMan » Thu Jan 26, 2012 9:24 am

I use ETFs as a proxy for mutual funds I own. I set up a portfolio of ETFs in Yahoo so at a glance can see how my holdings are doing interday. For example, I use BND for VBTLX or VXUS for VTIAX etc. On any given day the ETF can move (slightly) differently than the open ended fund, but over time they will track each other.
Best Wishes, SpringMan

alanf56
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Re: VTIAX vs VXUS

Post by alanf56 » Thu Jan 26, 2012 9:47 am

I noticed yesterday that BND went up about 1.4 times what VBTLX did. I wonder why??? :)

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ejvyas
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Re: VTIAX vs VXUS

Post by ejvyas » Thu Jan 26, 2012 10:07 am

alanf56 wrote:I was thinking that the VXUS might have the advantage in that you can buy and see what the price is when you buy. This isn't that big of a deal I guess if it is just one purchase and the intent is to hold. I wonder if one can use the ETF to guestimate the price of the mutual fund at day's end? In other words if you look at the VXUS price and see it falling is that enough indication that VTIAX will be lower at the end of the day?
Yes you can and I do that but its just a guesstimate. I feel ETFs also depend on the market expectations so they don't might now exactly follow each other over a short period.

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