Question for you: I have been comparing VFIAX to VOO, since I own a large position in VFIAX but it costs an additional basis point in fees over VOO. On a large holding, this difference adds up to real money over time. One would think that the only difference in performance would be attributable to the difference in management fee. Yet, when I compare the two in Portfolio Visualizer, it appears that the Admiral Shares actually out-perform VOO. Do you know why that might be, assuming the data is correct?
@@4tomop Also probably due to VOO straying from its NAV at times. But notice how they switch off year to year. It's not as if VFIAX consistently beats VOO. Nothing to lose sleep over because you can't do anything about it. As for the fee, 0.01% is $100/year for a $1M portfolio. So opt for VOO if that concerns you.
Chances are you'll see at least a few of these Vanguard mutual funds in your 401k menu. Do you own any?
We love Vanguard. They do not gouge you on fees like many funds!
Indeed, Lee! Thanks for watching!
I am with you on this. I love Vanguard.
Excellent!
Question for you: I have been comparing VFIAX to VOO, since I own a large position in VFIAX but it costs an additional basis point in fees over VOO. On a large holding, this difference adds up to real money over time. One would think that the only difference in performance would be attributable to the difference in management fee. Yet, when I compare the two in Portfolio Visualizer, it appears that the Admiral Shares actually out-perform VOO. Do you know why that might be, assuming the data is correct?
Could be Vanguard's unique share class structure. Pretty negligible difference. Wouldn't worry about it or the fee differential.
@@OptimizedPortfolio depends on how big the position is…
@@4tomop Also probably due to VOO straying from its NAV at times. But notice how they switch off year to year. It's not as if VFIAX consistently beats VOO. Nothing to lose sleep over because you can't do anything about it. As for the fee, 0.01% is $100/year for a $1M portfolio. So opt for VOO if that concerns you.
Can you do a video on CEFs?
Yep, at some point.
This guy gave the most generic and simple mutual funds possible, he’s doing the bare minimum to make this video
Thanks for the feedback!
It's still good advice