Posted byMessage
tojoe
LSU Fan
Scott
Member since Oct 2010
335 posts

Mutual fund or etf


I am buying 1 fund to invest in and forget. Which would you recommend?






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Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
54553 posts

re: Mutual fund or etf


ABALX





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ProjectP2294
Miami (OH) Fan
St Louis County
Member since May 2007
29915 posts

re: Mutual fund or etf


quote:

ABALX


I like that one a lot.






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whodatigahbait
LSU Fan
Uptown
Member since Oct 2007
1269 posts

re: Mutual fund or etf


VAPAX





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
8716 posts

re: Mutual fund or etf


quote:

ABALX


Yep, that'll work. Even with the loads, American Funds are tough to beat long term.






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5346 posts

re: Mutual fund or etf


quote:

VAPAX


1.63% expense ratio is way too high








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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5346 posts

re: Mutual fund or etf


quote:

ABALX


I really like American Funds. Their balanced fund is great. Fundamental Investors is a good one for growth and income.






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ProjectP2294
Miami (OH) Fan
St Louis County
Member since May 2007
29915 posts

re: Mutual fund or etf


quote:

1.63% expense ratio is way too high


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






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I Love Bama
Alabama Fan
Alabama
Member since Nov 2007
31300 posts

re: Mutual fund or etf


I concur dave





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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
8716 posts

re: Mutual fund or etf


quote:

VAPAX


For a large blended fund, that expense ratio is absurd. And it's not even 3 years old. HORRIBLE SUGGESTION. GTFO






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ProjectP2294
Miami (OH) Fan
St Louis County
Member since May 2007
29915 posts

re: Mutual fund or etf


quote:

I concur dave


que?






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whodatigahbait
LSU Fan
Uptown
Member since Oct 2007
1269 posts

re: Mutual fund or etf


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.






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ProjectP2294
Miami (OH) Fan
St Louis County
Member since May 2007
29915 posts

re: Mutual fund or etf


quote:

People on this board care too much about internal fees

Definitely agree with you on this.






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Cmlsu5618
McNeese State Fan
Destin/Jacksonville, FL
Member since Sep 2010
1807 posts

re: Mutual fund or etf


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.






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whodatigahbait
LSU Fan
Uptown
Member since Oct 2007
1269 posts

re: Mutual fund or etf


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?






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Cmlsu5618
McNeese State Fan
Destin/Jacksonville, FL
Member since Sep 2010
1807 posts

re: Mutual fund or etf


quote:

only being down about 5% in '08


VAPAX - Google Finance

Chart only shows the fund going back to 2010?






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whodatigahbait
LSU Fan
Uptown
Member since Oct 2007
1269 posts

re: Mutual fund or etf


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.






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Cmlsu5618
McNeese State Fan
Destin/Jacksonville, FL
Member since Sep 2010
1807 posts

re: Mutual fund or etf


ETAA: You are totally right.


This post was edited on 6/5 at 4:45 pm


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whodatigahbait
LSU Fan
Uptown
Member since Oct 2007
1269 posts

re: Mutual fund or etf


quote:

Your totally right.


my totally right?






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5346 posts

re: Mutual fund or etf


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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