The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: bootyman on May 25, 2016, 02:48:54 PM
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I am interested in investing in this fund, however I am concerned with liquidity. Would you say this thing is too thinly traded?
AOA = Ishares aggressive allocation
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Depends what size you are going in with and how often you are trading it.
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This is a fund of funds. If that's the allocation you want, why not buy cheaper, higher-volume funds from Schwab or Vanguard in that allocation and not pay 0.2%?
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This is a fund of funds. If that's the allocation you want, why not buy cheaper, higher-volume funds from Schwab or Vanguard in that allocation and not pay 0.2%?
Yep. Why pay them for something you can do on your own by buying the components directly?
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According to Google Finance, 45k shares change hands each day. You didn't specify how much you're buying, so I'll assume $10,000 (~400 shares). That's 1% of the daily volume according to Google Finance. I don't know if the 400 share orders fill instantly or in a few minutes.
The fund size of $400 million is roughly medium sized. Vanguard and iShares have funds with billions of assets, and small funds with $100 million in assets - it's within the middle of those ranges. So I'd think orders would fill quickly, based on the fund size.