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Worth pointing out that VOO is the Vanguard S&P 500 fund. SPY is State Street.
VOO and IVV tend to be closer in terms of total returns. But really, with index funds the key is putting enough money away (saving on a regular basis)-none of the true indexes are that far off each other in terms of total returns and expense ratios, although maybe tax efficiency is different (I haven't looked at that carefully).
If you like Fidelity, do that. If you like Schwab, do that. Just save and invest on a regular basis.
Schwab has cheaper index funds now and a lower minimum to open accounts. Don't pay anyone to manage your money. You will only pay fees for them to chase things they can't control.
OP if you're holding Vanguard funds in your EJ account paying an AUM fee you are defeating one of the main reasons for choosing Vanguard in the first place.
... Don't pay anyone to manage your money. You will only pay fees for them to chase things they can't control.
That is what I thought. Anyway I was preparing to travel full time and spend much of my time without internet access. I put part of my portfolio into a TIAA managed account. I thought I would give it a try for a year or two while I traveled. That was 7 years ago. The account has done well and is very highly diversified. The allocation was set roughly based on my preferences. Some of the holdings are not available for an individual investor. Nor would I understand how to pick or invest in things like hedge funds. After 7 years of success, I guess I am past the trial phase. Some managed funds seem to have value. For others you just pay additional fees without any benefits.
go to bogleheads.com, it's a great site for those who want to learn or discuss investing and consumer issues. It's tuned into Vanguard investing. John Bogle, is the founder of Vanguard.
because unless you do it professionally, it's very very hard to beat the market, the index fund is basically the stock market.. Stock market in a long run always go up. It's best to get index fund as the fees are minimal.
Some managed funds seem to have value. For others you just pay additional fees without any benefits.
Good summary. Those who've had favorable experience with a managed-fund, have ample reason to continue as clients. Those who have found their managed funds to lag indices, would justifiably sour on the former.
The whole idea of index funds is to embrace mediocrity, with the assumption (generally, but not always true) that an untoward aim for excellence results in outcome that's actually worse than average. And as others have noted, the key thing is discipline and apt diversification (OK, that's two things). Within a given sector, the specific fund - actively managed or index - is very much a secondary issue.
My only complaint about Vangurad is the website is very not with the times and not super user friendly. I mean everything from Schwab to Scottrade to Betterment, Wealthfront etc is way better website but all I do through vanguard is index funds and life strategy funds so it's not like I'm needing to research individual stocks or anything like that.
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