Author Topic: Alternatives to VTSAX  (Read 3473 times)

Frugal D

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Alternatives to VTSAX
« on: May 31, 2016, 11:55:18 AM »
I know VTSAX is the preferred passive investment vehicle around here, but even 1 basis point in fees is too much for me.

Has anyone constructed a diversified portfolio of individual stocks that they can share? Perhaps 2 stocks from each sector?

In general, for those of you that are anti index and mutual funds, how many individual stocks are you holding? 7-10?

Thanks!

protostache

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Re: Alternatives to VTSAX
« Reply #1 on: May 31, 2016, 12:16:22 PM »
For most stocks you're not going to get out of paying fees unless you go with a low quality cut rate broker like Robinhood. With a high quality discount broker like Fidelity, or even Vanguard, you're going to be paying $7-$8 per trade.

To answer your question, I'm not anti index funds. My wife and I have about half of our portfolio in VTSAX, VTIAX, and Fidelity equivalents. The other half is spread across about 25 individual positions. I've tried to equally weight across sectors (two packaged good giants, three soda manufacturers, two industrial giants, etc) but some plum opportunities presented themselves earlier this year and so we ended up pretty heavy in oil. Over time I'll be balancing that back out as I add new capital.

ShoulderThingThatGoesUp

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Re: Alternatives to VTSAX
« Reply #2 on: May 31, 2016, 12:30:37 PM »
I use Schwab funds, which have ERs a touch lower than those of Vanguard in most cases, but the amount is really trivial either way.

forummm

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Re: Alternatives to VTSAX
« Reply #3 on: May 31, 2016, 01:03:13 PM »
I know VTSAX is the preferred passive investment vehicle around here, but even 1 basis point in fees is too much for me.

Has anyone constructed a diversified portfolio of individual stocks that they can share? Perhaps 2 stocks from each sector?

In general, for those of you that are anti index and mutual funds, how many individual stocks are you holding? 7-10?

Thanks!

If your trades aren't free, then you are probably paying much more than a few basis points in transaction costs. And by giving up the diversity of 4000 firms you are most likely going to lag the index by more than a few basis points. Penny wise, pound foolish.

Frugal D

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Re: Alternatives to VTSAX
« Reply #4 on: May 31, 2016, 01:19:57 PM »
Sorry, I should have also mentioned I trade for free.

protostache

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Re: Alternatives to VTSAX
« Reply #5 on: May 31, 2016, 01:26:41 PM »
Sorry, I should have also mentioned I trade for free.

What broker do you use?

Frugal D

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Re: Alternatives to VTSAX
« Reply #6 on: May 31, 2016, 02:10:28 PM »
Sorry, I should have also mentioned I trade for free.

What broker do you use?

Wells Fargo. I have a legacy account that gets 100 free trades per year. They no longer offer it to new accounts, but grandfathered in all the accounts that used to be eligible for it.