No. of Recommendations: 20
Nobody should be paying a 0.79% expense ratio on a $50,000 investment in a bond fund. If this is a typical recommendation, I'd find someone else to advise you.


intercst
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No. of Recommendations: 12
I received an alert to sell VCIT and buy HABDX.

Who did you get the alert from? If it's one of the Motley Fool subscription services, you're asking in the wrong place. You should be asking on the premium boards.

Whether or not it's a TMF subscription that gave you the recommendation, I would question changing from a Vanguard ETF to a Harbor Funds mutual fund, since the expense ratio on Vanguard ETFs is generally less than 0.1%, while the expense ratio on HABDX, even with the $100k minimum, is 0.54%

Habdx has a $100000 minimum. Do you have an alternate?

Well, if you look at HABDX on the Harbor Funds site https://www.harborfunds.com/fees-expenses-2014.htm you can get an alternative right there, by clicking on the "Administrative Class" (HRBDX) link, which only(!) has a $50k minimum. Of course, with the lower minimum, the expense ratio (found on the "Fees & Expenses" tab) increases to 0.79%

Alternatively, you could look at other Vanguard Bond ETFs, but you would have to understand why they were wanting you to trade out of VCIT into HABDX.

AJ
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No. of Recommendations: 1
VCIT - Vangard Intermediate-term Corporate Bond ETF

https://etfdb.com/etf/VCIT/

https://www.investopedia.com/articles/investing/121615/top-3...

"Issued by Vanguard in 2009, the Intermediate-Term Corporate Bond Index Fund (NYSEARCA: VCIT) tracks the Barclays U.S. 5-10 Year Corporate Bond Index. "

A lot of the current writings are saying that intermediate to long term corporate bonds
are expected to decline as interest rates rise.
But even more current thought is saying that interest rates are not likely to rise as fast
as people were projecting earlier - say in December or January.

If you follow those folks thinking you might look at shorter term bonds or similar such ETFs.
I would assume that you could look at the universe of short-term corporate bond ETF's on the
market and find a low expense fee grouping to look over their prospectuses and recent
performances. There are also several short-term corporate bond funds available.

Howie52
Good luck
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No. of Recommendations: 20
Nobody should be paying a 0.79% expense ratio on a $50,000 investment in a bond fund. If this is a typical recommendation, I'd find someone else to advise you.


intercst
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No. of Recommendations: 2
Nobody should be paying a 0.79% expense ratio on a $50,000 investment in a bond fund. If this is a typical recommendation, I'd find someone else to advise you.

Another way to look at that fee: www.harborfunds.com says that HABDX has a "30-Day Subsidized SEC Yield" of 3.14%. So, the fee is a fourth of what the fund is yielding.
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