Question: What is the difference between these 2 versions of the Vanguard Total Bond Fund Index?
I have been advised to invest in the Vanguard Total Bond Market Index Fund. When I look at Vanguard’s web site, I see the Vanguard Total Bond Market Index Fund Investor Shares and the Vanguard Total Bond Market Index Fund Admiral Shares. I’m not sure which to invest in. Can anyone shed some light on this for me?
Thank you.
Answer:
Admiral shares have lower fees for someone who invests more money - $10K minimum.
They are effectively the same fund with the difference being in the fees charged.
Vanguard offers "Admiral Shares" of some of its products if you meet a minimum threshold (100K or 50K and several years of investments with them). So, if you are new to Vanguard, you have to invest 100K to be a part of their Admiral Shares.
I believe you can only get the "Admiral Shares" by investing with Vanguard directly, or if your employers retirement plan includes them.
Vanguard Total Bond Market Index Fund Investor (VBMFX)
Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX).