Author Topic: Vanguard Mutual Fund Fees  (Read 904 times)

Richie

  • 5 O'Clock Shadow
  • *
  • Posts: 23
Vanguard Mutual Fund Fees
« on: February 07, 2017, 05:12:30 PM »
Perhaps I should call Vanguard concerning this, but I figured those of you who already use them would be able to give me a quicker response.  I'm a bit confused by Vanguard's mutual fund fees, especially the mutual funds which contain other mutual funds (such as the Target Date fund, which is what I'm looking at).  The Target Date 2045 Fund charges a 0.16 fee.  Some of the funds it contains charge a higher fee, some a similar fee.  Is there a trickle down effect with these fees?  For example, would I be paying the .16 plus the fees for all of the other funds?  I'm conscious of this because I'm thinking of moving from Betterment, and want to be sure it's worth the effort.

Indexer

  • Handlebar Stache
  • *****
  • Posts: 1437
Re: Vanguard Mutual Fund Fees
« Reply #1 on: February 07, 2017, 05:51:32 PM »
The cost for the fund is the cost for the fund. Target Retirement funds cost what it states for their ER.

If you look at the internal funds they might be similar, but those are also the higher cost investor shares. If you look at the admiral share class of the funds they are much cheaper. They average around 0.1%. If you have limited assets the TR fund is cheaper. If you have a lot of assets the TR fund is more expensive... you are basically paying extra for the rebalancing.