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re: Good ETF or Vanguard fund suggestion...

Posted on 12/6/12 at 11:11 am to
Posted by Janky
Team Primo
Member since Jun 2011
35957 posts
Posted on 12/6/12 at 11:11 am to
I would not put much weight in the "star system". That only looks backwards and not forwards. For example, if you look at ICMAX it is a 5 star fund. It used to be a great fund, then the manager left and it is pretty weak. Alls I am saying is, do not base your choices solely on morningstar "star" ratings.
Posted by matthew25
Member since Jun 2012
9425 posts
Posted on 12/6/12 at 3:09 pm to
Good point. What do you suggest to look at, going forward for a mutual fund?

I see some funds with Apple as 10% of its holdings, and I am wary. Low P/E which is in line for valuation at 1000, but it seems it only rises when a new product is introduced.
Posted by acgeaux129
We are BR
Member since Sep 2007
15011 posts
Posted on 12/6/12 at 7:02 pm to
quote:

I would not put much weight in the "star system". That only looks backwards and not forwards. For example, if you look at ICMAX it is a 5 star fund. It used to be a great fund, then the manager left and it is pretty weak. Alls I am saying is, do not base your choices solely on morningstar "star" ratings.



This is huge.

Scoop, I'm sure Scottrade has a promotion with several dozen commission-free ETFs. I would simply break it down by sector:

S&P 500: SPY, IVV, VOO
Total Market: VTI, IYY
Gold IAU, GLD
Oil: USO, OIL, DBO (these all track different underlying)
Real Estate: VNQ
Homebuilders: XHB


Then I would do a comparison with expense ratios among the various groups and see if it's worth it to go commission-free on something with a higher expense ratio from the same sector(might be sort of a moot point since they are so low anyway).
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