Quote:
Originally Posted by aljetmet
Nothing!
An ETF replicates an index. Therefore it purchases stocks and other instruments that make up the index. Therefore the fees/costs that they incur are minimal ie the buying and selling of stocks. They recoup thier costs and charge a feed to replicate an index. They are not managing what stocks to buy because they are following the index. Very cool and provides a very good service. I presume if you have a Vanguard account the cost to buy the ETF should be free. Is that true?
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That's what I thought. But BostonCelt said there's layer on layer of fees and I wonderd if he knew something I didn't.
I do have Vanguard but that's my excess and I feel I can leave it untouched for a long time. In that case I've used Vanguard Index funds to fully diversify. The Vanguard Admiral funds have about the lowest expenses available. For everything else I use
Schwab ETFs. They're commission-free so it cost nothing to rebalance and the expenses are even lower than the Vanguard ETFs.