We own this fund in spite of the fact that its main goal is tax efficiency (given that the efficiency is not needed in retirement accounts). Though the fund is outstanding for tax purposes, it also boasts low turnover, broad diversification, and an extremely low expense ratio of .11% (category median is 1.24%) considering it is not a “true” index fund. The S&P index it follows promotes low turnover, which lowers trading costs. The fund does not own as many mid-cap companies as rival funds and stays true to the small-cap arena, with at least 80% of its holdings in small-cap. This prevents unnecessary redundancy in an overall portfolio.
