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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Debts_of_Despair on November 26, 2017, 03:20:07 PM

Title: Vanguard Bond Funds - VBTLX vs VBMFX
Post by: Debts_of_Despair on November 26, 2017, 03:20:07 PM
These are both total bond index funds.  VBTLX is Admiral with an expense ratio of 0.05%.  VBMFX is non-Admiral with expense ratio 0.15%.  Both are the same price per share and show the exact same performance over the last several years.  Why doesn’t VBTLX show better performance since it has a lower expense ratio?
Title: Re: Vanguard Bond Funds - VBTLX vs VBMFX
Post by: Radagast on November 26, 2017, 06:37:46 PM
Morningstar shows better performane for VBTLX. Not that you have a choice if you are under/over $10,000.

http://quotes.morningstar.com/chart/fund/chart.action?t=VBTLX&region=usa&culture=en-US&dataParams=%7B%22zoomKey%22%3A9%2C%22version%22%3A%22US%22%2C%22showNav%22%3Atrue%2C%22defaultShowName%22%3A%22name%22%2C%22mainSettingId%22%3A%22main%22%2C%22navSettingId%22%3A%22nav%22%2C%22benchmarkSettingId%22%3A%22benchmark%22%2C%22sliderBgSettingId%22%3A%22sliderBg%22%2C%22volumeSettingId%22%3A%22volume%22%2C%22defaultBenchmark%22%3Afalse%2C%22id%22%3A%22FOUSA02TYI%7CFOUSA00FQH%22%2C%22type%22%3A%22FO%7CFO%22%2C%22region%22%3A%22USA%22%2C%22name%22%3A%22XNAS%3AVBTLX%7CXNAS%3AVBMFX%22%2C%22baseCurrency%22%3A%22USD%22%2C%22defaultBenchmarks%22%3A%5B%22%22%2C%22XIUSA000MC%7CBBgBarc%20US%20Agg%20Bond%20TR%20USD%7CXI%22%5D%2C%22chartType%22%3A%22growth%22%2C%22startDay%22%3A%2211%2F26%2F2007%22%2C%22endDay%22%3A%2211%2F25%2F2017%22%2C%22chartWidth%22%3A955%2C%22SMA%22%3A%5B%5D%7D
Title: Re: Vanguard Bond Funds - VBTLX vs VBMFX
Post by: Debts_of_Despair on November 27, 2017, 10:16:41 AM
Huh.  I compared the charts on Google Finance but I guess I didn't look close enough. I was hoping for a bigger difference with that lower expense ratio. 

I already have the Admiral version in my IRA.  I'm just waiting to get a little bit more money in my wife's so she can convert as well.
Title: Re: Vanguard Bond Funds - VBTLX vs VBMFX
Post by: bmddds on November 27, 2017, 01:33:54 PM
I was under the impression they're basically the same fund, but once you have more money with vanguard it just shifts to admiral shares and you get charged less fees because you have more money invested with them.
Title: Re: Vanguard Bond Funds - VBTLX vs VBMFX
Post by: secondcor521 on November 27, 2017, 01:48:24 PM
Just to get a sense of the magnitude of the difference between the two funds, it is $10 per $10,000 invested per year.  So unless you have a lot of money in the fund (in which case you're in VBTLX already), it's going to be barely noticeable.