These mutual funds are the “best of the best” and offer the lowest expenses in the industry. Optional slice and dice funds are shown in italics. Primary are in bold. In many cases, ETF alternatives are available, but No-Robo guy recommends using only mutual funds. For Fidelity and Schwab, the expense ratios shown are “net expenses.” This means the actual “gross” expenses are higher, but they have been waived (for now). Not very reassuring, is it? Vanguard has “dual-class” versions, meaning they offer a lower expense fund version when you can make a higher minimum investment.
If you hold bonds in a taxable account, consider the tax-exempt funds instead of the total bond market index funds.
For a simple portfolio, go with either Vanguard or Fidelity. No-Robo guy likes Vanguard best because they have the most low-cost mutual fund options. For slice and dice, go with Vanguard or perhaps Fidelity. For low minimums, or if you want to use ETFs, go with Fidelity or Schwab.
All listings indicate name, ticker symbol, and expense ratio
Vanguard Mutual Funds
(As of 18 Jan 2020)
Stock Funds with Admiral Shares (minimum $3,000)
- Total Stock Market Index (VTSAX) 0.04%
- Small-Cap Value Index (VSIAX) 0.07%
- REIT Index (VGSLX) 0.12%
- Total International Stock Index (VTIAX) 0.11%
- Developed Markets Index (VTMGX) 0.07%
- Emerging Markets Stock Index (VEMAX) 0.14%
Bond Funds with Admiral Shares (minimum $50,000)
- Inflation-Protected Securities 0.10% (VAIPX)
- High-Yield Corporate (VWEAX) 0.13%
- Intermediate-Term Tax-Exempt (VWIUX) 0.09%
Bond Funds with Investor Shares (minimum $3,000)
- Total Bond Market Index (VBTLX) 0.05%
- Inflation-Protected Securities (VIPSX) 0.20%
- High-Yield Corporate (VWEHX) 0.23%
- Intermediate-Term Tax-Exempt (VWITX) 0.17%
Fidelity Mutual Funds
(As of 18 Jan 2020)
(no minimum)
- Total Stock Market Index (FSKAX) 0.015%
- Small-Cap Value Index (FISVX) – 0.05%
- REIT Index (FSRNX) 0.07%
- Total International (Global Ex-US) Stock Index (FSGGX) 0.056%
- Developed Markets (International Index) (FSPSX) 0.035%
- Emerging Markets Stock Index (FPADX) 0.076%
- US Bond Index Fund (FXNAX) 0.025%
- Inflation-Protected Bond Index (FIPDX) 0.05%
- High-Yield Corporate – (SPHIX) – 0.7% (note: higher expense)
- Municipal Income Fund – (FHIGX) – 0.46% (note: higher expense)
Schwab Mutual Funds
(As of 18 Jan 2020)
All funds have a $100 investment minimum
- Total Stock Market Index (SWTSX) 0.03%
- Small-Cap Value Index – no low cost Schwab fund available; Vanguard fund available (transaction fee and higher minimums apply)
- REIT Index – no low cost Schwab fund available; Vanguard fund available (transaction fee and higher minimums apply)
- Total International Stock Index – no low cost Schwab fund available; Vanguard fund available (transaction fee and higher minimums apply)
- Developed Markets (International Index) (SWISX) 0.06%
- Emerging Markets Large Company Stock Index – (SFENX) – 0.39%
- Total Bond Market Index (SWAGX) 0.04%
- Inflation-Protected Securities (SWRSX) 0.05%
- High-Yield Corporate – no low cost Schwab fund available; Vanguard fund available (transaction fee and higher minimums apply)
- Intermediate-Term Tax-Exempt – no low cost Schwab fund available; Vanguard fund available (transaction fee and higher minimums apply)