Comments on: Low-Minimum Index Funds and Commission-Free ETFs for Small Investors http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html like a friend telling you about money ... Wed, 23 May 2012 21:42:04 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: TFB http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-5802 TFB Fri, 04 Feb 2011 23:11:22 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-5802 @zany - Schwab and Vanguard ETFs track similar, but not exactly the same indexes. They are not really equal. Funds and ETFs are required to pass through all dividends to the shareholders. A tax efficient fund or ETF will minimize capital gains. Neither SCHA and SCHB distributed capital gains in 2010. @zany – Schwab and Vanguard ETFs track similar, but not exactly the same indexes. They are not really equal. Funds and ETFs are required to pass through all dividends to the shareholders. A tax efficient fund or ETF will minimize capital gains. Neither SCHA and SCHB distributed capital gains in 2010.

]]> By: zany http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-5726 zany Sat, 29 Jan 2011 02:18:27 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-5726 Schwab has recently reduced the fees for the ETFs and I am very tempted to move there for new money (instead of vanguard). I love vanguard but there are all these nuances with the brokerage that I would rather move. One thing I don't understand - If two ETFs track the same index (say SCHB/VTI or SCHA/VB), are they really equal, except for the expense ratios? What about dividends and capitals gains? Would a smaller fund (schwab in this case) be giving out higher dividends and capital gains just because it may not be able to absorb the churns of the ETF? I say this because while the graphs look similar, the dividends don't (on google finance). Schwab has recently reduced the fees for the ETFs and I am very tempted to move there for new money (instead of vanguard). I love vanguard but there are all these nuances with the brokerage that I would rather move.

One thing I don’t understand – If two ETFs track the same index (say SCHB/VTI or SCHA/VB), are they really equal, except for the expense ratios? What about dividends and capitals gains? Would a smaller fund (schwab in this case) be giving out higher dividends and capital gains just because it may not be able to absorb the churns of the ETF? I say this because while the graphs look similar, the dividends don’t (on google finance).

]]> By: Jesse James http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-4493 Jesse James Wed, 08 Sep 2010 17:48:08 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-4493 Hii good idea for commission free ETF funds. Thanx. Hii good idea for commission free ETF funds. Thanx.

]]> By: KD http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3471 KD Tue, 16 Feb 2010 17:19:20 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3471 Yup, I understand. Thanks. Yup, I understand. Thanks.

]]> By: TFB http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3470 TFB Tue, 16 Feb 2010 16:35:47 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3470 KD - Yes, it would. I only gave the example to make it comparable with the portfolios made up of low-minimum, commission-free funds and ETFs at Schwab and Fidelity. KD – Yes, it would. I only gave the example to make it comparable with the portfolios made up of low-minimum, commission-free funds and ETFs at Schwab and Fidelity.

]]> By: KD http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3469 KD Tue, 16 Feb 2010 16:17:08 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3469 TFB, does the VEA+VWO combo miss out Canada? If so, would VEU be a better fit, even though its more expensive? TFB, does the VEA+VWO combo miss out Canada? If so, would VEU be a better fit, even though its more expensive?

]]> By: TFB http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3457 TFB Sat, 13 Feb 2010 00:02:01 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3457 Jeff - Fidelity usually requires $2,500 minimum for each fund. If you commit to $200 a month in an IRA, they will let you start with no minimum. Otherwise you only have those 25 commission-free ETFs for low minimum. Jeff – Fidelity usually requires $2,500 minimum for each fund. If you commit to $200 a month in an IRA, they will let you start with no minimum. Otherwise you only have those 25 commission-free ETFs for low minimum.

]]> By: Jeff http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3456 Jeff Fri, 12 Feb 2010 23:49:39 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3456 Does Fidelity have any funds with low minimums? Does Fidelity have any funds with low minimums?

]]> By: Charlotte_Res http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3452 Charlotte_Res Fri, 12 Feb 2010 15:18:58 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3452 Thanks for this info. If these features are available to IRA's its a no-brainer for young professionals to begin saving for retirement with these firms. Thanks for this info. If these features are available to IRA’s its a no-brainer for young professionals to begin saving for retirement with these firms.

]]> By: TFB http://thefinancebuff.com/low-minimum-index-funds-and-commission-free-etfs.html#comment-3449 TFB Fri, 12 Feb 2010 04:54:01 +0000 http://thefinancebuff.com/2010/02/low-minimum-index-funds-and-commission-free-etfs.html#comment-3449 Ari - Thank you for reminding us about the underlying indexes. By coincidence I did not include SCHB in my examples. The Schwab open-end total stock market index fund tracks the DJ Wilshire 5000 Index. Its international index fund tracks a Schwab index. For a small portfolio though, these finer details don't matter that much. If one has to pay a commission to buy VTI every month, one is still better off buying SCHB without a commission. Ari – Thank you for reminding us about the underlying indexes. By coincidence I did not include SCHB in my examples. The Schwab open-end total stock market index fund tracks the DJ Wilshire 5000 Index. Its international index fund tracks a Schwab index. For a small portfolio though, these finer details don’t matter that much. If one has to pay a commission to buy VTI every month, one is still better off buying SCHB without a commission.

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