Bridgeway Blue Chip 35 Index (BRLIX)
Expense Ratio: 0.15%
Expected Lifetime Fees: $4,881.99
The Bridgeway Blue Chip 35 Index fund (BRLIX) is a Large Blend fund started on 07/31/1997 and has $274.60 million in assets under management. The current manager has been running Bridgeway Blue Chip 35 Index since 01/22/2006. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.
Vanguard Large Cap ETF (VV)
Expense Ratio: 0.10%
Expected Lifetime Fees: $3,271.86
The Vanguard Large Cap ETF (VV) is an Exchange Traded Fund. It is a "basket" of securities that index the Large Blend investment strategy and is an alternative to a Large Blend mutual fund. Fees are very low compared to a comparable mutual fund like Bridgeway Blue Chip 35 Index because computers automatically manage the stocks.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|DFA US Large Company||DFUSX||4.0%||3,800||0.10%|
|Fidelity Spartan 500 Index Advtg||FUSVX||5.0%||44,000||0.06%|
|Fidelity Spartan 500 Index Inv||FUSEX||5.0%||44,000||0.10%|
|Fidelity Spartan Total Market Index Inv||FSTMX||17.0%||12,200||0.10%|
|Fidelity Spartan Total Mkt Idx Advtg||FSTVX||17.0%||12,200||0.07%|
|Northern Stock Index||NOSIX||2.7%||3,100||0.10%|
|Schwab S&P 500 Index||SWPPX||3.0%||11,700||0.09%|
|Schwab Total Stock Market Index||SWTSX||1.0%||1,900||0.09%|
|TIAA-CREF Equity Index Instl||TIEIX||11.0%||3,600||0.07%|
|TIAA-CREF S&P 500 Index Instl||TISPX||14.0%||1,400||0.07%|
|Vanguard 500 Index Signal||VIFSX||4.0%||107,600||0.05%|
|Vanguard Institutional Index Instl||VINIX||5.0%||104,800||0.04%|
|Vanguard Institutional Index Instl Pl||VIIIX||5.0%||104,800||0.02%|
|Vanguard Instl Ttl Stk Mkt Idx Instl||VITNX||12.0%||19,400||0.05%|
|Vanguard Large Cap Index Instl||VLISX||7.0%||5,500||0.08%|
|Vanguard Large Cap Index Signal||VLCSX||7.0%||5,500||0.10%|
|Vanguard Russell 1000 Index Instl||VRNIX||20.0%||355||0.08%|
|Vanguard Russell 3000 Index Instl||VRTTX||32.0%||130||0.09%|
|Vanguard Tax-Managed Capital App Adm||VTCLX||2.0%||3,800||0.12%|
|Vanguard Tax-Managed Growth & Inc Adm||VTGLX||6.0%||2,400||0.12%|
|Vanguard Total Stock Market Idx Instl||VITSX||5.0%||181,800||0.05%|
|Vanguard Total Stock Mkt Idx Signal||VTSSX||5.0%||181,800||0.06%|
Turnover represents how much of a mutual fund's holdings are changed over the course of a year through buying and selling. Active mutual funds have an average turnover rate of about 85%, meaning that funds are turning over nearly all of their holdings every year. A high turnover means you could make lower returns because: 1) buying and selling stocks costs money through commissions and spreads and 2) the fund will distribute yearly capital gains which increases your taxes. Look for funds with turnover rates below 50%. For comparison, ETF turnover rates average around 10% or lower.
Generally, smaller funds do better than larger ones. The more assets in a mutual fund, the lower the chance that it will beat its index. Managers outperform an index by choosing stocks that are undervalued. In order to find these undervalued stocks, the manager has to know more than his competitors to develop an "edge." There are only a finite number of stocks a mutual fund manager can reasonably analyze and actively track to gain such a competitive edge. When the fund has more assets, the manager must analyze large companies because he needs to take larger positions. Large companies are more efficiently priced in the market and it becomes increasingly difficult to get an edge.