ETFs at IB or Vanguard Index funds?

[dc_publius]

It is time to start my portfolio. My money has been parked in high interest checking accounts for much too long. It's rather embarrassing, being a former Finance major. Investment amount is about 45K. I'm 26. My goal is to put together a decenlty diversified portfolio that leans international, and includes equities, REITs, and maybe some bonds/metals. Perhaps a portfolio similar to this one.

Right now, I am leaning towards IB. I could put together a nice group of ETFs but also have the abiliy to get back into trading some equities. A couple of years ago I swing traded some stocks and did decently well so I'm not completely green. Also, IB has a vast offering of ETFs, whereas Vanguard seems to have very measly index fund offering, - especially in the international area - ( Vanguard index funds ) and many funds charge $10 annually for each fund that has less than 10K.

On the other hand, Vanguard may be better. No $10 monthly fee (which I would probably hit at IB) Buying Funds is cheaper. (except for maybe Emerging Mkts fund that has a 0.5% purchase fee) ETFs generally have 0.05% lower expense ratios than equivelent Index Funds but that is only $22.5/year savings on 45K.

So... What do you guys think? IB or Vanguard?

[gull]

I would suggest Vanguard. It has the best index funds available in many asset classes. There's no reason to stick to just one though.

I've used ETFs from a variety of companies, including Vanguard. The index fund vs. ETF debate is pretty complicated and rather pointless (switching doesn't make much difference).