Vanguard Equivalents in new TDA commission free list
Vanguard Equivalents in new TDA commission free list
Hi All,
I posted this in the large thread but I fear that thread is too noisy a discussion. I am wondering what is the best equivalent of BSV, VSS, and BNDX.
For BSV, is it some combination of SPSB/SPTS?
For VSS, is it some combination of GWX/EWX?
For BNDX, is it IAGG?
Thanks!
-kehyler
Commission free list: https://www.tdameritrade.com/retail-en_ ... 000835.pdf
BSV info: http://www.etf.com/BSV
SPSB info: http://www.etf.com/SPSB
SPTS info: http://www.etf.com/SPTS
VSS info: http://www.etf.com/VSS
GWX info: http://www.etf.com/GWX
EWX info: http://www.etf.com/EWX
BNDX info: http://www.etf.com/BNDX
IAGG info: http://www.etf.com/IAGG
I posted this in the large thread but I fear that thread is too noisy a discussion. I am wondering what is the best equivalent of BSV, VSS, and BNDX.
For BSV, is it some combination of SPSB/SPTS?
For VSS, is it some combination of GWX/EWX?
For BNDX, is it IAGG?
Thanks!
-kehyler
Commission free list: https://www.tdameritrade.com/retail-en_ ... 000835.pdf
BSV info: http://www.etf.com/BSV
SPSB info: http://www.etf.com/SPSB
SPTS info: http://www.etf.com/SPTS
VSS info: http://www.etf.com/VSS
GWX info: http://www.etf.com/GWX
EWX info: http://www.etf.com/EWX
BNDX info: http://www.etf.com/BNDX
IAGG info: http://www.etf.com/IAGG
Re: Vanguard Equivalents in new TDA commission free list
Yes. I'd be tempted, though to just pick one for simplicity. They are both reasonable choices.
Yes. But neither choice is compelling. (There is no perfectly equivalent fund to VSS in existence.) I'd probably pay a commission to use VSS. If making periodic contributions, I'd accumulate in one of the other funds and then do a lump sum swap once a year (or however often seems reasonable).
Yes. Unlike the others you asked about, it is virtually a perfect replacement.
Re: Vanguard Equivalents in new TDA commission free list
Ok, I think that I have an idea of some specifics.
For BSV, online from vanguard it says that it is 64.1% treasury, so then BSV could perhaps be approximated by 0.641*SPTS + 0.359*SPSB?
I will probably just forgo the VSS replacements because of their expense ratios. For completeness sake though. VSS, would it be ok to approximate BSV by 0.80*GWX + 0.20*EWX? The 0.2 comes from vanguard's VSS page being 20% emerging markets.
For BSV, online from vanguard it says that it is 64.1% treasury, so then BSV could perhaps be approximated by 0.641*SPTS + 0.359*SPSB?
I will probably just forgo the VSS replacements because of their expense ratios. For completeness sake though. VSS, would it be ok to approximate BSV by 0.80*GWX + 0.20*EWX? The 0.2 comes from vanguard's VSS page being 20% emerging markets.
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Re: Vanguard Equivalents in new TDA commission free list
For replacing VSS, that would be correct, though you shouldn't hold either in taxable due to capital gains distributions. On the other hand, you shouldn't worry about the expense ratio directly, as both funds have such extensive securities lending revenues that they routinely run negative expense ratios.
Re: Vanguard Equivalents in new TDA commission free list
Ok, thanks. Is my understanding for BSV also ok?Theoretical wrote: ↑Wed Nov 22, 2017 11:16 am For replacing VSS, that would be correct, though you shouldn't hold either in taxable due to capital gains distributions. On the other hand, you shouldn't worry about the expense ratio directly, as both funds have such extensive securities lending revenues that they routinely run negative expense ratios.
Re: Vanguard Equivalents in new TDA commission free list
Also, just for completeness I realized that there is also a decent way to replicate VXUS, namely 0.8*SPDW +0.2*SPEM. Of course, if anyone has any advice, I'll have open ears.
Re: Vanguard Equivalents in new TDA commission free list
SPDW + SPEM seems OK, but the average market cap is higher than with VXUS. This can be addressed by adding in some DGS, too. For instance, 80% SPDW, 15% SPEM, and 5% DGS looks more similar to 100% VXUS when using morningstar.com's instant X-ray tool.
Re: Vanguard Equivalents in new TDA commission free list
This is true, I hadn't run my thoughts through x-ray tool yet - good catch. I should have done that already.
Given DGS's expense ratio though (0.6ish), a 5% portion of portfolio seems somewhat uncompelling personally. Interesting quandary though for a boglehead, which axiom is more important when we can't have them all: low cost, diversification, or the market weight?
Re: Vanguard Equivalents in new TDA commission free list
I like to tilt to small-cap value, so about 10% of my international is in DGS. I find it compelling when it goes up. Not so compelling when it goes down.
Re: Vanguard Equivalents in new TDA commission free list
DLS is an option I use for international small cap. The ER not great, but since purchasing shortly after issuance, I have been satisfied with overall.
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Re: Vanguard Equivalents in new TDA commission free list
Indeed, DLS is a pretty reliable fund, and it's basically tracked DFA's International Small Value fund from the former's inception.