No. of Recommendations: 0
consider buying SPDR's (SPY) as that is nearly as efficient as VFINX and fee is the same as for a stock transaction.

I like SPDR's very much and use them in my brokerage account (E*Trade) for the very same reason as is being discussed here.

I think SPY may actually be MORE efficient than VFINX if you are dealing with large enough purchases that the commission becomes a very low percentage. The commission at E*Trade is $14.95 per trade for SPY. If you buy $10000 of SPY, the commission is only 0.15%. VFINX expenses are around 0.2% of your total account value per year.

One disadvantage of SPY (at E*Trade) is that free dividend reinvestment is not available, while at Vanguard all their funds allow free dividend reinvestment.

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