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-   -   Etrade or Vanguard (http://archives1.twoplustwo.com/showthread.php?t=499231)

the_rookie 09-12-2007 03:30 AM

Etrade or Vanguard
 
I'm a newbie so forgive if my question is idiotic. Does it matter which site I use for an RIRA account?

gull 09-12-2007 04:02 AM

Re: Etrade or Vanguard
 
That's not an idiotic question. It's good that you're opening a Roth IRA.

Honestly, it doesn't matter much - either choice would be great. If you plan to invest directly in funds, I would use Vanguard. However, using E*trade to invest in ETFs is equally good.

the_rookie 09-12-2007 01:56 PM

Re: Etrade or Vanguard
 
This is the more risker investment right, but with possibly greater returns? I'm probably going the passive approach and stick with index funds.

skindog 09-12-2007 02:08 PM

Re: Etrade or Vanguard
 
ETFs are index funds, only in share form instead of in fund form. Exactly the same passive investment vehicle.

Personally I prefer ETFs because I can trade them from any brokerage acct instead of having to have an acct with the fund manager.

darinvg 09-12-2007 03:26 PM

Re: Etrade or Vanguard
 
When you open the account where do you put your initial deposit? It said minimum of $3K in one of like 5 choices.

Chrisman886 09-12-2007 06:29 PM

Re: Etrade or Vanguard
 
[ QUOTE ]
ETFs are index funds, only in share form instead of in fund form.


[/ QUOTE ]

Not all ETFs track an index. I think that most ETFs don't.

gull 09-12-2007 07:18 PM

Re: Etrade or Vanguard
 
[ QUOTE ]
This is the more risker investment right, but with possibly greater returns? I'm probably going the passive approach and stick with index funds.

[/ QUOTE ]

No, they are pretty much equivalent. For instance, Vanguard offers ETF versions of nearly all of its funds. Their performance will be identical to the funds.

ilikeaces86_ 09-12-2007 11:44 PM

Re: Etrade or Vanguard
 
Vanguard

Fishhead24 09-13-2007 09:36 AM

Re: Etrade or Vanguard
 
ETRADE is awesome!

Preem 09-14-2007 10:52 PM

Re: Etrade or Vanguard
 
If you're planning to invest in more than one fund, then Vanguard mutual funds might be better since they don't charge sales commissions (although, depending on the size of your account, they might charge you an annual maintenance fee).

ETFs charge a commission every time you buy or sell them, just like a stock, unless your broker waives the transaction costs (which most don't).

If you're only going to purchase one fund, hold it for a long time, and not make frequent, period additional purchases, then it's a toss up.

Vanguard won't charge you a commission when you purchase their mutual funds, whereas purchasing ETFs will cost you a commission for each purchase/sale. But ETFs generally have lower management fees than mutual funds, so over a long period of time, ETFs might be the better choice.

Vanguard offers both mutual funds and ETFs, so the only reason for going with E*Trade would be if you wanted to purchase non-Vanguard ETFs, since E*Trade's transactions costs are lower.


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