DFA US Social Core Equity 2 (DFUEX)
Expense Ratio: 0.35%
Expected Lifetime Fees: $11,154.10
The DFA US Social Core Equity 2 fund (DFUEX) is a Mid-Cap Blend fund started on 10/1/2007 and has $194.70 million in assets under management. The current manager has been running DFA US Social Core Equity 2 since 03/23/2012. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.
Vanguard Extended Market Index ETF (VXF)
Expense Ratio: 0.10%
Expected Lifetime Fees: $3,271.86
The Vanguard Extended Market Index ETF (VXF) is an Exchange Traded Fund. It is a "basket" of securities that index the Mid-Cap Blend investment strategy and is an alternative to a Mid-Cap Blend mutual fund. Fees are very low compared to a comparable mutual fund like DFA US Social Core Equity 2 because computers automatically manage the stocks.
|Mutual Fund Name||Ticker Symbol||Turnover||Assets (M)||Annual Fees|
|Columbia Mid Cap Index Z||NMPAX||15.0%||2,000||0.20%|
|DFA T.A. US Core Equity 2 Instl||DFTCX||6.0%||2,600||0.24%|
|DFA US Core Equity 2 I||DFQTX||9.0%||6,200||0.22%|
|Fidelity Spartan Extended Mkt Index Inv||FSEMX||11.0%||6,300||0.10%|
|Fidelity Spartan Extnd Mkt Idx Advtg||FSEVX||11.0%||6,300||0.07%|
|Northern Mid Cap Index||NOMIX||12.1%||628||0.15%|
|Principal MidCap S&P 400 Index Inst||MPSIX||15.8%||507||0.27%|
|Vanguard Extended Market Idx Instl||VIEIX||14.0%||21,300||0.12%|
|Vanguard Extended Market Idx Inv||VEXMX||14.0%||21,300||0.28%|
|Vanguard Extended Market Idx Signal||VEMSX||14.0%||21,300||0.14%|
|Vanguard Mid Cap Index Ins||VMCIX||22.0%||28,600||0.08%|
|Vanguard Mid Cap Index Inv||VIMSX||22.0%||28,600||0.24%|
|Vanguard Mid Cap Index Signal||VMISX||22.0%||28,600||0.10%|
|Vanguard S&P Mid-Cap 400 Index Fund Institutional Shares||VSPMX||26.0%||112||0.10%|
|Vanguard Strategic Equity Inv||VSEQX||73.0%||3,100||0.33%|
Turnover represents how much of a mutual fund's holdings are changed over the course of a year through buying and selling. Active mutual funds have an average turnover rate of about 85%, meaning that funds are turning over nearly all of their holdings every year. A high turnover means you could make lower returns because: 1) buying and selling stocks costs money through commissions and spreads and 2) the fund will distribute yearly capital gains which increases your taxes. Look for funds with turnover rates below 50%. For comparison, ETF turnover rates average around 10% or lower.
Generally, smaller funds do better than larger ones. The more assets in a mutual fund, the lower the chance that it will beat its index. Managers outperform an index by choosing stocks that are undervalued. In order to find these undervalued stocks, the manager has to know more than his competitors to develop an "edge." There are only a finite number of stocks a mutual fund manager can reasonably analyze and actively track to gain such a competitive edge. When the fund has more assets, the manager must analyze large companies because he needs to take larger positions. Large companies are more efficiently priced in the market and it becomes increasingly difficult to get an edge.