Re:How the 0.001% invest
by desdiv on Monday December 17, 2018 @08:39AM
(#18698828)
VIIIX's[0] Institutional Plus Shares (with a $100 million requirement) has an expanse ratio of 0.02%, so that's $200k.
It would be hard to find someone at this salary level who can match the tracking performance of Vanguard. If they achieve a tracking error that's 1% higher than that of Vanguard's, that would mean an annual loss of approximately $800k compared to Vanguard (1,000,000,000 * 8% * 1%).
Re:How the 0.001% invest
by dev_dull on Monday December 17, 2018 @10:10AM
(#18699358)
This really is a no brained. With such a small fee with such a large investment you’d be extremely hard pressed to beat that performance (if all you wanted was to match an index).
It would be hard to find someone at this salary level who can match the tracking performance of Vanguard. If they achieve a tracking error that's 1% higher than that of Vanguard's, that would mean an annual loss of approximately $800k compared to Vanguard (1,000,000,000 * 8% * 1%).
[0] https://institutional.vanguard.com/VGApp/iip/site/institutio...