Vanguard Index funds & expenses

So I just wrote about why index funds make sense. The idea then becomes to track the market at the least cost. Enter Vanguard whose total market fund has an expense ratio of .20% and whose Vanguard 500 index fund has a ratio of .18%. Pretty cheap.

Now add on a $10/year fee for an IRA with less than $5,000 and a $2.50/quarter fee for accounts with less than $10,000 invested. All of a sudden things are not so cheap for small investors like me. While holding ETFs in a ROTH IRA doesn’t take full advantage of the tax benefits, it may still be the way to go.

One Response to “Vanguard Index funds & expenses”

  1. Joseph Spagnoli says:

    A friend and I are seeking an index fund of pharmaceutical companies.