ETF Envy
ETFs are officially the cool kids at the fund party—so cool, even their stodgy cousins (mutual funds) want to be them now. Don and Tom dive into the unstoppable rise of ETFs, from their tax efficiency to their lower costs and exploding popularity. They break down Vanguard’s once-patented ETF conversion trick, Dimensional’s catch-up moves, and the flood of junk ETFs cluttering the field. Listener questions cover Social Security timing, asset allocation, and the eternal mystery of why anyone still uses Raymond James. Plus, Tom finally admits he doesn’t know one Washington town.
0:04 Mutual funds get ETF envy—everyone wants to be an ETF now
1:27 ETF explosion: 800 launched per year, mutual funds fading
2:15 Not all ETFs are good—many are speculative junk
3:16 Why Dimensional finally embraced ETFs (and what Avantis had to do with it)
4:04 Vanguard’s ETF conversion patent and how others are now copying it
6:31 Active ETFs explode from $170B to $1T in 4 years
7:04 Original ETF promise: low cost, tax-efficient index investing
7:45 VT vs. VTWAX—same fund, ETF still cheaper
9:18 Tax efficiency and intraday trading perks of ETFs
10:41 Trusted providers: Vanguard, Dimensional, Avantis, iShares (sometimes)
11:52 Even some mutual funds like VTWAX don’t distribute gains
12:35 Don’s verdict: ETFs best in taxable accounts, mutuals okay in IRAs
13:19 The one (weak) advantage mutual funds still have: fractional shares
14:29 Don and Tom’s travel tangent, Canada edition
16:20 Listener Q1: Should I swap mutual funds for ETFs? (Depends on taxes)
18:05 Listener Q2: Does 10% in BND matter alongside AVGE? (Take the risk quiz)
21:33 Listener Q3: When should I take Social Security? (Not at 62)
24:35 Listener Q4: Reinvest ETF dividends or direct to underweights? (Reinvest)
25:34 Listener Q5: Raymond James moved me to cash—tax consequences?