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The Money Mustache Community
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Vanguard Bond Funds - VBTLX vs VBMFX
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Topic: Vanguard Bond Funds - VBTLX vs VBMFX (Read 19564 times)
Debts_of_Despair
Pencil Stache
Posts: 544
Location: NY
Vanguard Bond Funds - VBTLX vs VBMFX
«
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?
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Radagast
Magnum Stache
Posts: 2560
One Does Not Simply Work Into Mordor
Re: Vanguard Bond Funds - VBTLX vs VBMFX
«
Reply #1 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®ion=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
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Debts_of_Despair
Pencil Stache
Posts: 544
Location: NY
Re: Vanguard Bond Funds - VBTLX vs VBMFX
«
Reply #2 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.
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bmddds
5 O'Clock Shadow
Posts: 1
Re: Vanguard Bond Funds - VBTLX vs VBMFX
«
Reply #3 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.
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secondcor521
Walrus Stache
Posts: 5528
Age: 54
Location: Boise, Idaho
Big cattle, no hat.
Re: Vanguard Bond Funds - VBTLX vs VBMFX
«
Reply #4 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.
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Vanguard Bond Funds - VBTLX vs VBMFX