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... Is a net 1% fee structure reasonable here?...

Some downsides.

1) ETF's can trade at a small premium or discount to the underlying fun. My guess is that there is a small premium more often than a discount.

2) Whenever you buy or sell an ETF, you will loose a small percentage due to the spread.

3) Eventually when you sell the fund, you will also pay a commission.

4) With a Vanguard fund, once you get some big bucks in an account, you can get their Admiral funds that have a lower expense ratio.

5) Sometimes a fund closes to new investors but current investors can still add money. I'm not sure what happens to an ETF when the fund that it is based on closes.

6) Keeping track of your cost basis and tracking your performance will be a lot of paperwork, especially with reinvested dividends. I would not count on you broker having all the information 25 years from now when they have gone through several mergers.

I might use ETF's for obscure funds but I not for Vanguard funds.

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