- May 30, 2013
- Reaction score
Dear diary. Today I learned that I'm more vanilla than I thought. Ngl, wtf? OM.
STYLE. COMMUNITY. GREAT CLOTHING.
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I stopped getting drunk so I’m not TV drunk poasting.One of the simultaneously most beautiful and annoying things about the same people poasting in all threads both serious and dumb, is that there’s a decent chance that all threads eventually become the Drunk Poasting Thread
For long term investing, I don’t think there’s much practical difference beyond what you mentioned. ETFs are a bit more liquid in that you can buy or sell immediately as opposed to only at the day’s close, but if you’re not actively trading that’s immaterial. Some ETFs can be dodgy because their strategy for trying to track an index can have some gaps, especially when they’re smaller ETFs that can’t really buy a fully representative sample. That’s probably not much of an issue for VOO, though. Even though its value is based on market demand rather than NAV, it looks like the two tend to perform almost identically.Is there a specific reason to choose the vanguard admiral share funds like the 500 index fund vs the EFTs like VOO? All money is in either IRA or 401ks. Is it just buying full shares or not, and the 0.03 vs 0.04 expense?
As Lawyerdad mentioned, either strategy works and I own both Vanguard Funds and ETFs. Funds allow you to put any amount of money in vs. having to buy whole ETF shares but it's not like you are waiting to buy BRK.A shares, so the amount sitting in cash is minimal. While that is a plus for Funds, they are not as tax efficient because Funds pass dividends payouts onto you so there is a taxable event each year while the ETF gets around this. This really only matters in taxable accounts vs. IRAs/401ks.Is there a specific reason to choose the vanguard admiral share funds like the 500 index fund vs the EFTs like VOO? All money is in either IRA or 401ks. Is it just buying full shares or not, and the 0.03 vs 0.04 expense?