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Mutual fund or etf

Posted on 6/5/13 at 1:57 pm
Posted by tojoe
Scott
Member since Oct 2010
335 posts
Posted on 6/5/13 at 1:57 pm
I am buying 1 fund to invest in and forget. Which would you recommend?
Posted by Broke
AKA Buttercup
Member since Sep 2006
65037 posts
Posted on 6/5/13 at 2:04 pm to
ABALX
Posted by ProjectP2294
South St. Louis city
Member since May 2007
69996 posts
Posted on 6/5/13 at 2:16 pm to
quote:

ABALX


I like that one a lot.
Posted by whodatigahbait
Uptown
Member since Oct 2007
1748 posts
Posted on 6/5/13 at 2:24 pm to
VAPAX
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69884 posts
Posted on 6/5/13 at 2:34 pm to
quote:

ABALX


Yep, that'll work. Even with the loads, American Funds are tough to beat long term.
Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 6/5/13 at 2:36 pm to
quote:

VAPAX


1.63% expense ratio is way too high


Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 6/5/13 at 2:43 pm to
quote:

ABALX


I really like American Funds. Their balanced fund is great. Fundamental Investors is a good one for growth and income.
Posted by ProjectP2294
South St. Louis city
Member since May 2007
69996 posts
Posted on 6/5/13 at 2:48 pm to
quote:

1.63% expense ratio is way too high


I would worry more about the fund being less than 5 years old.
Posted by I Love Bama
Alabama
Member since Nov 2007
37687 posts
Posted on 6/5/13 at 3:01 pm to
I concur dave
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69884 posts
Posted on 6/5/13 at 3:04 pm to
quote:

VAPAX


For a large blended fund, that expense ratio is absurd. And it's not even 3 years old. HORRIBLE SUGGESTION. GTFO
Posted by ProjectP2294
South St. Louis city
Member since May 2007
69996 posts
Posted on 6/5/13 at 3:08 pm to
quote:

I concur dave


que?
Posted by whodatigahbait
Uptown
Member since Oct 2007
1748 posts
Posted on 6/5/13 at 3:11 pm to
quote:

quote:


1.63% expense ratio is way too high




I would worry more about the fund being less than 5 years old.


People on this board care too much about internal fees, while they are important they are not the end all and be all when it comes to fund selection, they are just one of many things to look at.

The mutual fund has been around for less than 5 years but the strategy has been live for over 10 years, and no not back-testing actual money has been in this strategy for that long.
Posted by ProjectP2294
South St. Louis city
Member since May 2007
69996 posts
Posted on 6/5/13 at 3:25 pm to
quote:

People on this board care too much about internal fees

Definitely agree with you on this.
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 6/5/13 at 3:27 pm to
quote:

People on this board care too much about internal fe


As they should in my opinion. The only reason they should not, is if a fund portfolio has outperformed enough (over a fair time frame) to compensate for the internal expense. This fund hasn't been around enough to show this justification.

Investing in a big, S&P fund with a high expense ratio and no track record is just ignorantly creating undue risk. ABALX has a much better chance year-after-year to outperform.
Posted by whodatigahbait
Uptown
Member since Oct 2007
1748 posts
Posted on 6/5/13 at 3:31 pm to
quote:

As they should in my opinion. The only reason they should not, is if a fund portfolio has outperformed enough (over a fair time frame) to compensate for the internal expense. This fund hasn't been around enough to show this justification.


so only being down about 5% in '08 and being up 25% isn't justification enuogh?
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 6/5/13 at 3:35 pm to
quote:

only being down about 5% in '08


VAPAX - Google Finance

Chart only shows the fund going back to 2010?
Posted by whodatigahbait
Uptown
Member since Oct 2007
1748 posts
Posted on 6/5/13 at 3:45 pm to
Once again as I said before the strategy has been run outside of the mutual fund for over 10 years.

Do some real due dilligence outside of google finance and looking at the internal expenses and you might actually learn something.
Posted by Cmlsu5618
Destin, FL
Member since Sep 2010
3763 posts
Posted on 6/5/13 at 4:15 pm to
ETAA: You are totally right.
This post was edited on 6/5/13 at 4:45 pm
Posted by whodatigahbait
Uptown
Member since Oct 2007
1748 posts
Posted on 6/5/13 at 4:22 pm to
quote:

Your totally right.


my totally right?
Posted by gatorsimz
cafe risque
Member since Feb 2009
8135 posts
Posted on 6/5/13 at 7:41 pm to
quote:

People on this board care too much about internal fees, while they are important they are not the end all and be all when it comes to fund selection, they are just one of many things to look at.


People should care about fees, you're losing 1-1.5% every year. I could invest in Vanguard's 500 Index fund for a .17% expense and it's returning 10.74% since inception. That 1-1.5% equates to thousands of dollars over a long period of time.
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