AAP general queries from members

[Froogle]

Thank you. I allocated the funds like this:

VTSMX - 35%
VFWIX - 35%
VFSTX - 10%
VWEHX - 10%
VIPSX - 10%

Can you please share why your distribution to VTSMX and VFWIX 35% and rest 10%.

[NoChaos]

Is there any reason for preference for VFWIX over VGTSX (Vanguard Total Intl Stock Index)? Or both are equally good?

VFWIX has Canada and VGTSX does not have Canada is the main difference.

[trk]

Which is better ETF or Index Mutual fund ( ex VTI / VTSMX) for a NRA (no GC/USC).In terms of taxes, etc.

PS : Idea is to start with 20K USD and buildup protfolio till its 60K to keep total investment below estate tax level.

TIA

[laks0]

Which is better ETF or Index Mutual fund ( ex VTI / VTSMX) for a NRA (no GC/USC).In terms of taxes, etc.

PS : Idea is to start with 20K USD and buildup protfolio till its 60K to keep total investment below estate tax level.

TIA

ETF maybe a bit more tax efficient but with Vanguard ETFs/MFs difference could be negligible. With Admiral shares available for 10K, even expense ratio differences are also negligible.

But if you plan to build up the portfolio, MFs maybe better because of transaction costs in buying ETFs.

ETF or MF

[laks0]

Heres the index for Boglehead Wiki pages. it covers a lot of topics regarding US investments/AAP.

Table of contents

[ak02]

I found that there is no transaction cost for ETFs in Vanguard(may be the account need to have more than certain amount?)
Also if I convert existing MFs to ETFs in the same asset class there is no tax impact.

So Is there any reason to hold MFs at all if ETFs offering all good things such as no trasaction cost, less expensive, tax efficiency, no minimum amount etc? Anything I am missing?

ETF maybe a bit more tax efficient but with Vanguard ETFs/MFs difference could be negligible. With Admiral shares available for 10K, even expense ratio differences are also negligible.

But if you plan to build up the portfolio, MFs maybe better because of transaction costs in buying ETFs.

ETF or MF

[laks0]

I found that there is no transaction cost for ETFs in Vanguard(may be the account need to have more than certain amount?)
Also if I convert existing MFs to ETFs in the same asset class there is no tax impact.

So Is there any reason to hold MFs at all if ETFs offering all good things such as no trasaction cost, less expensive, tax efficiency, no minimum amount etc? Anything I am missing?

You are right, if amount less than $50K, you will have annual account maintenance fee of $20. Other than that there is no transaction costs. thx

Fees

[mahipalc]

I just went by Desi's advice, and I am glad I did..:)

[laks0]

I just went by Desi's advice, and I am glad I did..:)

its easy to say that when the markets are going up :)

[desi_mom]

I found that there is no transaction cost for ETFs in Vanguard(may be the account need to have more than certain amount?)
Also if I convert existing MFs to ETFs in the same asset class there is no tax impact.

So Is there any reason to hold MFs at all if ETFs offering all good things such as no trasaction cost, less expensive, tax efficiency, no minimum amount etc? Anything I am missing?

I think no transaction cost for ETFs for the first 25 transactions in a year. That is what I remember my Vanguard contact telling me.