GLDM - 0.18 exp. ratio 'Gold minishares'

Discussion of the Gold portion of the Permanent Portfolio

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Kbg
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by Kbg » Mon Jul 09, 2018 9:39 pm

dualstow wrote:
Mon Jul 09, 2018 9:16 pm
Kbg wrote:
Mon Jul 09, 2018 1:52 pm
I'm hurt fella's truly...calling me a bold face liar. :)

Google away on this issue, tis a well known fact. Here is one of many articles on the issue.

https://www.fidelity.com/learning-cente ... efficiency

If I was a Boglehead I'm sure I'd be nagging you more about "Well, ETFs are bad because they are so easy to trade that people will do stupid stuff." 8)

Where there are three like kind Vanguard ETF/mutual funds (e.g. regular vs. Admiral shares vs. the ETF version) IDRC ever seeing the ETF version that doesn't have the same expense ratio as the Admirals shares. And why is that? Cuz all the small fry trading is a non-event for the ETF as a whole.
Huh. I learned something new today.
I wonder if the tax-managed version of mutual funds has yet another strategy.
No. Tax managed MFs are actually tax managed in that they tweak their bond allocations toward munis or other tax advantaged bonds and engage in tax loss harvesting and other stock trading strategies to minimize gains distributions. By contrast, the ETF advantage is structural. Side note...I believe the SEC has or is very close to approving a change to the ETF rules that opens up what can be ETF’d and there are many predictions that MF outflows will increase even more.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by dualstow » Tue Jul 10, 2018 5:54 am

I mean Vanguard’s tax-managed stock funds. See VTMSX, for example.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by Kbg » Tue Jul 10, 2018 10:51 am

dualstow wrote:
Tue Jul 10, 2018 5:54 am
I mean Vanguard’s tax-managed stock funds. See VTMSX, for example.
I assume this is directed to me...yes, Vanguard will be using various stock trading/management strategies to minimize taxes. There are quite a few strategies fund managers can use to manage taxes/distributions...I know some and I'm sure there are many I'm not aware of. For example, if you had company A that is a dividend producer vs. a like and kind (sort of) company B that does not issue dividends the manager would select B over A. Another method you are probably familiar with is tax loss harvesting.

I'm guessing you could read the prospectus and get a pretty good rundown on what they are doing specifically with regard to the fund noted.

If I misunderstood your intent, my apologies.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by Kbg » Tue Jul 10, 2018 12:49 pm

Desert wrote:
Tue Jul 10, 2018 10:56 am
Kbg is correct that ETF's have a structural advantage regarding tax efficiency. Vanguard is an exception, however. They have a structure (patent protected until 2023) that allows the mutual fund to be as tax efficient as the ETF.

https://www.bogleheads.org/wiki/ETFs_vs ... uard_funds
Learned something new today...explains why ETF and Admiral share mngt fees are always the same.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by dualstow » Tue Jul 10, 2018 2:54 pm

Aha. And it explains why so many B’Hds stick with fund shares.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by ochotona » Tue Aug 07, 2018 12:50 pm

Desert wrote:
Tue Aug 07, 2018 10:56 am
Well, the time has come for me to buy some additional gold. It appears that GLDM is the best option, due to the ER. Does anyone disagree?
The spread is larger, the volumes are much less, trade carefully with limit orders. Go fishing for the price.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by KevinW » Fri Aug 17, 2018 5:49 pm

GLDM and AAAU are tied with respect to expense ratio, at 0.18%. Does anyone have an argument for why one is better than the other?
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by Kbg » Fri Aug 17, 2018 5:57 pm

Too early to say...need a quarter's worth of trading to see what happens.

If the first three days' trading for both is any indication clearly the early nod goes to GLDM.
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by boglerdude » Sun Aug 19, 2018 12:44 am

AAAU is backed by the Perth Mint. But one might prefer their online depository so everything isnt vulnerable to a failure of your brokerage
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Re: GLDM - 0.18 exp. ratio 'Gold minishares'

Post by eufo » Sun Aug 19, 2018 8:49 am

boglerdude wrote:
Sun Aug 19, 2018 12:44 am
AAAU is backed by the Perth Mint. But one might prefer their online depository so everything isnt vulnerable to a failure of your brokerage
This. If you want it backed by the Perth Mint, you can do so directly without adding more counterparty risk with not only your brokerage, but also the fund family.

GLDM has the same risks, as does any paper gold option.
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