Earlier quoted context omitted.
Good choice, one of my best investments ever. Get to 100 shares and sell some covered calls.
What happens at 100 shares?
1 covered call == 100 shares
Vanguard's average fee is now 0.07% after biggest-ever cut
251–260 of 279 posts
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#252Someone correct my math here, but if they have 10 trillion in assets under management and the management fee is 0.07% then that's still 7,000,000,000 or 7 billion in fees every year? Not bad
Indeed, that's the reason why they can afford to reduce the fees. Index managers are not charities after all.
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#253I wish there can be more focus on the voting rights for passive funds. Investors are concentrating voting power with these fund managers, just giving away their voting rights for free. I'd like to see better investor voting management systems become more available for "pass through" voting for passive fund investors. [1] https://vanderwalt.de/blog/etf-vs-direct-indexing-investing-...
Having voting rights kind of goes against the point of tracking an index though. Better invest in ESG funds or something like that. And for funds that use synthetic replication there is nothing to vote on in the first place.
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#254Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#255Earlier quoted context omitted.
Even so, I think the incentives are still for the Vanguard management to make as little profit as possible so that they can compete and have more funds under management. Controlling more billions of dollars of stock shares is kind of its own reward and brings many opportunities for enrichment, and if they don't have to worry about making money for shareholders, they can pretty much always engineer the lowest fees.
This kind of thing makes me nervous. What kind of opportunities? Can they somehow loan out shares for example?
Even if you don't touch a dime of it, "had $X million in funds under management" is good for your next job. In business better to be the CEO of an ailing billion dollar business and drive it into the ground than actually do a good job managing a firm 1/10th the size.
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#256Earlier quoted context omitted.
Twist things around however you want, but VGPMX [0] invests in the companies producing precious metals. 1/4 of the portfolio is that. [0] https://investor.vanguard.com/investment-products/mutual-fun...
Vanguard invests in bitcoin companies . They just don't have a dedicated ETF or mutual fund. For instance, Vanguard is one of the largest institutional investors in MSTR and MARA.
MSTR is now a direct proxy for btc, and MARA definitely is. Having massive investments in those stocks while claiming "we only invest in companies, not crypto", feels super wonky to me.
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#257Earlier quoted context omitted.
> By the way, if you think crypto UX is hard, try trading options with thinkorswim. You've misunderstood me. I have no interest in shitty UX. A competition for the shittiest UX is like the lowest high jump. You want a shitty UX? I can get you one by 4:30, with nail polish. The fact that extremely confusing UX is easy to find in no way mitigates a merely very confusing UX. I kind of agree with you though. Cryptocurren…
Define "make it good", cause the way I see it today, it is extremely good. But then again, I understand the UX and I don't find it difficult at all. I actually wonder if you've tried it... it really is just put in an address, amount (of any size), and click send. Want to earn interest or borrow funds? Load up Morpho.org, deposit into a vault of your liking and borrow whatever you want. No need to ask anyone for permi…
I'll know it when I see it. One necessary, but insufficient condition is this. I should be able to have an account (I think they're called wallets) where no one else can just run away with the contents, and I can't permanently lose access.
I guess a bank could just steal money from my account, but I believe they won't, and furthermore that there will be something left for me to take legal action against if they try. The scary regulation helps me.
I have no idea who the players are in cryptocurrency accounts, but I have no confidence that they are going to continue to exist from one day to the next. And then if I try to host my own wallet or whatever, I don't have nearly the operational discipline and security for that to work.
I don't even know if it's possible to solve this for me.
I looked at morpho.org and I don't understand what it is. I don't know what a vault is.
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#258Earlier quoted context omitted.
I've been holding it for close to 10 years, it's my best performing holding by a long shot. I like to hold leveraged ETFs in my tax-free investment account and TQQQ along with UPRO are the ETFs of choice for me.
Fascinating. What are the black swan events for those holdings - I assume they can get margin called?
No, the reason I hold them in my tax-free investment account is because you can't trade on margin in those accounts. So the closest thing to margin you can get is a leveraged ETF. I never have to worry about getting margin called, or going into debt with a leveraged ETF, those things are not possible. I like to think of 3x leveraged ETFs as letting me take my tax free investment account and tripling it.
I can certainly lose a lot of money, the fees are substantially higher than a regular ETF (about 4x higher), and the volatility and constant rebalancing on a daily basis results in a phenomenon known as volatility drag... and yet TQQQ and UPRO have been an absolute killer over the past 10 years.
In my non-tax free accounts I hold unleveraged ETFs: SPY and QQQ.
Re: Vanguard's average fee is now 0.07% after biggest-ever cut
#259Earlier quoted context omitted.
Vanguard won't let you trade anything even tangentially related to crypto FYI
Not true. I own a few shares of MSTR in my Vanguard brokerage account.
MSTR was not a crypto company when it was listed so this crypto backdoor trojan horse is an exception