Review of Broad Base Core Mutual Funds for Brokerages
In the previous newsletter, we reviewed core index ETFs for brokerage plans. In this newsletter, we review core index mutual funds used for brokerage plans. Last year we review them in November 9, 2015: Broad Base Core Mutual Fund Review.
We wrote last year that for many brokerages, there were not many transaction fee free low cost index mutual funds, especially those from Vanguard. Unfortunately, this situation hasn’t improved. For the brokerage plans that use mutual funds, we again have to rely on some low cost transaction fee free broad base mutual funds. Notice these funds are very brokerage specific. For these mutual funds, some brokerages might charge transaction fees and some might not. As a reminder, our brokerage specific plans only use transaction fee free funds. Furthermore, the fees these mutual funds charge have not improved much to match those ultra low cost index mutual funds.
As we reviewed in the last year’s newsletter, many S&P 500 index mutual funds available to brokerages are comparable, though some might charge much more than others. Please refer to last year’s newsletter for these funds.
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