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How does Hostplus offer their balanced index fund so cheap?
Main Post:
Hi,
How does Hostplus offer their balanced index fund so cheap?
0.06% P.A. (INCL. INVESTMENT FEE 0.02% P.A. AND ICR 0.04% P.A.)
Whereas the closest Vanguard fund, Diversified Balanced Index ETF (VDBA) is:
0.27% P.A.
Yes, there are differences ETF vs a Fund but the portfolio is slightly different but are marketed the same, balanced index funds. So my question is, how can HOSTPLUS do it four times cheaper?
Top Comment: Isn't one (Hostplus) in super? That will have an influence from a taxation/regulatory standpoint. Also possibly economies of scale/efficiency could explain it in certain cases but youd need to compare the two companies more closely.
Why do European fund providers not offer a VWCE-equivalent?
Main Post:
I’d like to keep the value chain in Europe. I yearn for the euros I pay in fees to be recycled into the European economy. I do not want them to go into paying the salaries of American workers in the Big 3 fund companies, or into the pockets of the American elites. I want them to be reinvested in Torino or at Lille, to pay for people in Talinn or Lisboa
My broker is already European-owned.
But there’s no VWCE-equivalent...
Top Comment:
Lyxor MSCI ACWI is a VWCE equivalent but the fund provider is Société Générale and the fund is domiciled in Luxembourg.
See also banker on wheels: https://www.bankeronwheels.com/world-etfs/
My 401k does not offer a Total Market Index fund, how should I balance my contributions to the following index funds they do offer to best mimic a Total Market Index fund?
Main Post:
The index funds offered are:
S&P500 (VFIAX)
Mid-Cap (VIMAX)
Small-Cap (VSMAX)
Additionally, would it make sense to bump up the weight a bit to the small-cap fund (relative to total market) to take advantage of excess returns of small-cap stocks?
Thanks!
Top Comment:
If you want the closest actual approximation to a total market fund, go by market cap weight: https://www.bogleheads.org/wiki/Approximating_total_stock_market
- 81% Vanguard 500 Index Fund (VFIAX)
- 4% Vanguard Mid-Cap Index Fund (VIMAX)
- 15% Vanguard Small-Cap Index Fund (VSMAX)
Does BoA Merrill offer any money market mutual fund?
Main Post:
Does BoA Merrill lynch edge offer any money market mutual fund or others in that nature? Trying to move some emergency fund over there to leverage the preferred reward program.
Top Comment:
You can buy CDs, t-bills, or just a bond fund through the platform.
Since vanguard doesn't offer VUAG or an S&P500 acc fund, where else is best?
Main Post:
I unfortunately have already opened a s&s ISA with vanguard and bought some VUSA but did not understand the difference between an accumulating fund and a dividend fund. Since I'm intending on contributing to the fund over decades and using it to retire, I believe I would rather invest in an accumating fund such as VUAG, but Vanguard doesn't offer this on its own platform. My question therefore is which S&S ISA platform would you recommend for long term investment into VUAG?
Thanks in advance!
Top Comment:
InvestEngine
UK broker, ISA account, free and offers hundreds of ETFs.
https://investengine.com/etf-range/vanguard/
Accepts ISA transfer and has a current cashback promotion.
Magellan Global Fund Partnership Offer Closed Class Units - Thoughts?
Main Post:
Been a long time holder of MGE, now MGOC, and have no complaints with the overall performance.
Because of the restructure and move to MGOC, I now have the option to buy into the closed class units, and if I am brutally honest with myself, I am not totally sure why this would be a good or bad idea. At face value, it seems like a decent opportunity, but I would be lying if I said I fully understand it. I have the cash available to buy in for the total amount I am eligible for, and am a long term hold type of investor.
Any thoughts or opinions would be much appreciated.
Top Comment:
Basically they are offering you closed class units in the same fund at a 7.5% discount to NAV, plus some options that will be able to be exercised at a similar discount. The closed class units trade under ticker MGF. The main difference between these closed class units and the open class units you have currently is that the closed class can trade at a discount to NAV whereas the open class will always trade around NAV. So, the benefit of receiving the discounted units may be diminished depending on how big a discount MGF trades relative to its NAV.
Did I just confuse you more?