Slicing Fees
Vanguard slashes fees again, pushing its average expense ratio down to six basis points. Don and Tom contrast that with outrageously expensive ETFs charging 2% to 14% annually, walk through why evidence-based factor funds cost a bit more than pure index funds, answer listener questions about international tilts and fund-of-funds rebalancing, and clarify why diversification across assets still matters more than fee-chasing alone.
0:04 Vanguard cuts fees again — average expense ratio now 0.06%
3:43 What expense ratios really are (and how many investors unknowingly overpay)
5:00 The shockers: ETFs charging 2% to 14% annually
11:13 Comparing Vanguard index costs vs. Avantis and Dimensional factor funds
14:41 Why anything above ~0.35% for passive/rules-based investing is likely too much
16:03 The “Militia” ETF: 14% fee, poker background, no real track record
19:46 Listener: Increasing international exposure inside IRA/Roth
21:35 Clarifying fund-of-funds vs. multiple funds for rebalancing
23:18 Why Avantis and Dimensional include mid-cap, REITs, and bonds
27:25 Evidence-based investing isn’t just about returns — it’s about correlation and volatility control
Learn more about your ad choices. Visit megaphone.fm/adchoices
