I'm trying to figure out what the difference is between them. For example, at Vanguard, they have:
- An emerging markets index ETF (ticket VWO), with a 0.15% expense ratio.
- An emerging markets index fund (VEIEX), with a 0.33% expense ratio.
- The same fund but admiral shares (VEMAX), with a 0.15% expense ratio.
The ETF has the same ratio as the admiral shares fund. All of these 3 are the same basic fund: 4,300 stocks, $61.2 billion in assets.
So, 2 questions:
1) Why would anyone ever invest in VEIEX? If you don't have $10k for the admiral shares version, you could just buy VWO and get a lower expense ratio.
2) Is there any difference I'm missing between VWO and the admiral shares (VEMAX)? Seems like they're exactly the same, except VWO doesn't require the $10k minimum. Is there some different tax treatment here or something that I'm missing?
Submitted January 06, 2017 at 11:50PM by Xandamere http://ift.tt/2i2J4sS
