I've never sold a TIPS. When you click sell, how long does it take for the transaction to complete? Do you have to wait for a buyer, or is it like selling a stock where it gets bought pretty much instantaneously?
Why [does] Vanguard's VAIPX have such a high expense ratio?
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Re: Why [does] Vanguard's VAIPX have such a high expense ratio?
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Re: Why [does] Vanguard's VAIPX have such a high expense ratio?
The active muni funds have ERs of 0.09% and have the recordkeeping for the entire fund. VAIPX has substantial recordkeeping offloaded to 401Ks and other DC plans that hold the fund.jeffyscott wrote: ↑Wed Jan 19, 2022 3:18 pm There's about 8 other Vanguard managed bond funds with the identical ER of 0.1/0.2% for admiral/investor.
Similar to what I said earlier, it seems highly unlikely that this is just a coincidence. It seems clear that the ER is what it is simply because that's where Vanguard has chosen to set it.
I didn't count them, but there's similarly a bunch of muni funds with identical ERs.
I do think the issue is not very relevant to an individual's portfolio. A difference of 1 percentage point in the percentage of bonds one holds as TIPS is likely to have a larger impact on portfolio performance than whether intermediate TIPS are held with SCHP, FIPDX, or VAIPX.
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Re: Why [does] Vanguard's VAIPX have such a high expense ratio?
IIRC, it's almost always been instantaneous on either the buy or the sell. There were a few times where I started submitting the buy/sell order and paused to study the preview of the order and the book shifted enough that the order didn't go through and I just cancelled it and resubmitted. It's been a while, so I really don't remember. I do recall that if I just submitted the order and clicked through the final step quickly they always went through immediately. I have always used Fidelity. Other brokerages may be different.Robot Monster wrote: ↑Wed Jan 19, 2022 3:52 pmI've never sold a TIPS. When you click sell, how long does it take for the transaction to complete? Do you have to wait for a buyer, or is it like selling a stock where it gets bought pretty much instantaneously?
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Re: Why [does] Vanguard's VAIPX have such a high expense ratio?
My biggest gripe about VAIPX is the minimum $50,000 purchase.
Because it's not an index fund, because for whatever reason Vanguard's minimum purchase for VAIPX Admiral shares is $50,000. If you want less, you have to buy VIPSX Investor shares with an 0.20% expense ratio.
In contract, VTAPX, the Admiral shares of their short-term TIPS index fund, has a minimum purchase of $3,000, and the Investor share class, VTIPX, has been retired.
Because it's not an index fund, because for whatever reason Vanguard's minimum purchase for VAIPX Admiral shares is $50,000. If you want less, you have to buy VIPSX Investor shares with an 0.20% expense ratio.
In contract, VTAPX, the Admiral shares of their short-term TIPS index fund, has a minimum purchase of $3,000, and the Investor share class, VTIPX, has been retired.
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Re: Why [does] Vanguard's VAIPX have such a high expense ratio?
One could hold a combination of VTAPX and LTPZ to establish the desired intermediate duration, or hold SCHP in a Vanguard account.
I don't see why it is a problem if Vanguard chooses not to offer an intermediate TIPS index fund. Fidelity does not offer a short-term TIPS index fund, but you can hold VTIP or STIP in a brokerage account there.
Is this really a major problem or deficiency with Fidelity or Vanguard?
I don't see why it is a problem if Vanguard chooses not to offer an intermediate TIPS index fund. Fidelity does not offer a short-term TIPS index fund, but you can hold VTIP or STIP in a brokerage account there.
Is this really a major problem or deficiency with Fidelity or Vanguard?
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Re: Why [does] Vanguard's VAIPX have such a high expense ratio?
I use VTIP and LTPZ just fine in a vanguard brokerage account. Allows me to extend the blended maturity to where I what it, plus allows VTIP to act as the bond fund I pull from first for expenses.