Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
TIAA-CREF will offer Zero-commission Stocks, ETFs and Options trades beginning 1/16/20, as per announcement I saw when I logged in just now. Also has 3000 Mutual funds now available commission free.
TIAA-CREF will offer Zero-commission Stocks, ETFs and Options trades beginning 1/16/20, as per announcement I saw when I logged in just now. Also has 3000 Mutual funds now available commission free.
Shopping is going to be good in 2020.
Of the 3000 mutual funds that TIAA now offers commission free, how many were not commission before this announcement? (In other words, how big a change was this?) And of course, I would love to see an end to 12-b-1 fees. Not holding my breath.
An NTF fund and also no 12b-1 fee? I doubt this will happen. Anyways, TIAA has some surprises in the NTF line up. A lot institutional fund shares are NTF and enable you to get in at lower minimums. I own BEGIX and BOPIX that way.
How is TIAA for a broker? I only have my work 403(b) with them (holding 1 American Fund - RWMGX) but have thought about moving some of my retirement investment acounts from TD there to consolidate things and let TIAA be my 'retirement account broker' so to speak. My other taxable longterm accounts at TDA/Schwab and WF are probably going to stay put, though.
Lots of funds are NTF without a 12b-1 fee. That just means that the servicing fee isn't called out explicitly, not that it doesn't exist.
For example, JACTX class T (retail class) has ER of 0.91%, no 12b-1 fee, and is NTF at several brokerages. The institutional class, JCAPX has ER of 0.72% and is available with a $2500 min and TF at Fidelity. The only difference according to the summary prospectus, is the amount of "other expenses".
"Other expenses" is a catchall for burying expenses. As the SEC writes, "If shareholder service fees are paid outside a 12b-1 plan, then they will be included in the 'Other Expenses' category." Those fees are still being collected from the retail fund. They're just not called out explicitly as 12b-1 fees.
Retail class funds tithe their investors for servicing fees, regardless of whether they're called out by an explicit 12b-1 line item.
It gets worse. American Century funds often have a single "all in" management fee. This makes it look as if investors aren't bearing any costs, that management is. The reality of course is that management isn't forgoing profits; the investors are simply paying higher management fees to cover the costs. How much of those fees are going toward operating/servicing expenses is completely opaque.
ACIIX (institutional class) charges a management fee of 0.72%, and that covers everything. TWEIX (retail investor class) charges a management fee of 0.92% and that covers everything. The managers aren't getting paid more to manage one share class than another - they manage the entire portfolio underlying all share classes Rather, the higher fee is used for covering the cost of servicing the retail share. ERs are from the summary prospectus.
How is TIAA for a broker? I only have my work 403(b) with them (holding 1 American Fund - RWMGX) but have thought about moving some of my retirement investment acounts from TD there to consolidate things and let TIAA be my 'retirement account broker' so to speak. My other taxable longterm accounts at TDA/Schwab and WF are probably going to stay put, though.
honestly, their web interface lives a lot to be desired. I hold my nose and take what I can from it. They do have access to some funds NTF no one else does. They don't make it easy to find necessarily. However, with a single malt in hand on the weekends, I manage.
If you are looking to consolidate, IMO Schwab will be better option.
Comments
Anyways, TIAA has some surprises in the NTF line up. A lot institutional fund shares are NTF and enable you to get in at lower minimums. I own BEGIX and BOPIX that way.
For example, JACTX class T (retail class) has ER of 0.91%, no 12b-1 fee, and is NTF at several brokerages. The institutional class, JCAPX has ER of 0.72% and is available with a $2500 min and TF at Fidelity. The only difference according to the summary prospectus, is the amount of "other expenses".
"Other expenses" is a catchall for burying expenses. As the SEC writes, "If shareholder service fees are paid outside a 12b-1 plan, then they will be included in the 'Other Expenses' category." Those fees are still being collected from the retail fund. They're just not called out explicitly as 12b-1 fees.
Retail class funds tithe their investors for servicing fees, regardless of whether they're called out by an explicit 12b-1 line item.
It gets worse. American Century funds often have a single "all in" management fee. This makes it look as if investors aren't bearing any costs, that management is. The reality of course is that management isn't forgoing profits; the investors are simply paying higher management fees to cover the costs. How much of those fees are going toward operating/servicing expenses is completely opaque.
ACIIX (institutional class) charges a management fee of 0.72%, and that covers everything. TWEIX (retail investor class) charges a management fee of 0.92% and that covers everything. The managers aren't getting paid more to manage one share class than another - they manage the entire portfolio underlying all share classes Rather, the higher fee is used for covering the cost of servicing the retail share. ERs are from the summary prospectus.
If you are looking to consolidate, IMO Schwab will be better option.