something often overlooked is Fund "Total Assets" (or assets under management)
VOO has over 1,200 billion ... READ: 1.2 TRILLION (across the same ETF and mutual fund)
Schwab's SWPPX is around 100 billion
For ETFs this matters more, since larger funds will trade more and be more liquid. This means lower bid/ask spreads, saving you a small expense.
Also if this is a taxable account: Which mutual fund will get shut down in 10-20 years? The one with 1 trillion dollars, or the one with 10 million dollars? Avoid small funds... they may be unprofitable for the company.
As an example, ishares has some new target date ETFS, such as this 2050 target date: https://www.ishares.com/us/products/333 ... e-2050-etf
I really like the concept, and hope they can grow to successful products, but currently this one has 17 million fund assets... which means higher bid-ask spreads, and if it doesn't grow, blackrock could shut it down.
At an expense ratio of 0.11%, blackrock only makes 17 million * 0.11% = 18k per year on this. I'm guessing it costs more than 18k to run an entire ETF. Even if this was somehow profitable, it's so insignificant, the company could say "hmm, that's not worth our time.. shut it down"
VOO has over 1,200 billion ... READ: 1.2 TRILLION (across the same ETF and mutual fund)
Schwab's SWPPX is around 100 billion
For ETFs this matters more, since larger funds will trade more and be more liquid. This means lower bid/ask spreads, saving you a small expense.
Also if this is a taxable account: Which mutual fund will get shut down in 10-20 years? The one with 1 trillion dollars, or the one with 10 million dollars? Avoid small funds... they may be unprofitable for the company.
As an example, ishares has some new target date ETFS, such as this 2050 target date: https://www.ishares.com/us/products/333 ... e-2050-etf
I really like the concept, and hope they can grow to successful products, but currently this one has 17 million fund assets... which means higher bid-ask spreads, and if it doesn't grow, blackrock could shut it down.
At an expense ratio of 0.11%, blackrock only makes 17 million * 0.11% = 18k per year on this. I'm guessing it costs more than 18k to run an entire ETF. Even if this was somehow profitable, it's so insignificant, the company could say "hmm, that's not worth our time.. shut it down"
Statistics: Posted by pm5987 — Thu Oct 17, 2024 12:15 am — Replies 14 — Views 1243