Personal Investments • Vanguard ETFs or mutual funds

Hello kind Bogleheads. I've been investing with Vanguard for years. I'm hoping you can help with something that I'm pondering.

Here are my current target allocations:
~21% BND (ETF) (in nontaxable account)
~9% BNDX (ETF) (in nontaxable account)
~28% VXUS (ETF)/VTIAX (mutual fund) (in taxable and nontaxable accounts; the mutual fund portion is in an i401k that only allows mutual funds)
~42% VTI (ETF)/VTSAX (mutual fund) (in taxable and nontaxable accounts; the mutual fund portion is in an i401k that only allows mutual funds)
(I also have other money in a money market mutual fund as my emergency fund.)

Once or twice a year I look at my percentages and rebalance by moving money within the nontaxable accounts. In the past, I only had mutual funds (no ETFs). I'm finding that it's more involved to rebalance with the ETFs, as I have to sell one ETF, then buy the other ETF. It seems like I can do this immediately one after another without any issues - please confirm. With ETFs, the exact time that I place the order makes a difference, where with mutual funds since you get end of day pricing, the time of day doesn't matter. Not a big deal, but seems to add a little stress for me.

The expense ratios for ETFs are slightly better than for mutual funds. This is the main reason I'm in the ETFs now. Also, I think I heard that ETFs can be better for tax reasons?

Should I stick with the ETFs or move my money to mutual funds across the board for ease in management? Please help me with any considerations.

Thank you!
Amy

Statistics: Posted by Keepitsimple! — Mon Apr 08, 2024 1:55 pm — Replies 0 — Views 32

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