This ETF Could Help Grow Any Retirement Nest Egg

This ETF Could Help Grow Any Retirement Nest Egg

Another thing to love about the Vanguard Growth ETF is its low annual fee of 0.04%. Comparable funds charge around 1%, meaning that you'd pay about $100 if you had $10,000 invested in it. The Vanguard ETF would charge you $4. That might not seem like a big difference, but Vanguard points out that with an initial $10,000 investment growing at 9% over 10 years, the lower fee would save you $2,255. The fund also sports a low turnover rate -- recently, it was 2.7%. This means that the fund's managers aren't shifting their holdings much: A 100% turnover rate would mean that the entire value of the fund had been traded over the past year -- and that would not only suggest a lack of conviction in the fund's holdings, but it could also generate more in trading fees and short-term capital gains (which usually carry higher tax rates). Index funds tend to have low turnover rates because their managers don't actively decide what to buy and sell and when -- instead, they just buy and hold whatever is …
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