VTSAX vs. VFIAX: Total Stock Market vs. S&P 500 Most index investors choosing a U.S. stock index fund typically choose one that replicates either the S&P 500 or a total stock market index. Posted on September 26, 2019 March 25, 2020 by Jeremy Schneider. As of March 31, 2020, it has generated an average annual return of 10.53%. That’s all I have for today. On the other hand, the 500 Index Fund only provides exposure to 500 of the largest U.S. companies, similar to the S&P 500 Index. As past performance suggests, the returns for VTSAX and VFIAX are likely to receive similar returns going forward. How does investing a little money into either fund every month instead of online savings account sound? Sign In. VTSAX vs. VTI: They’re Identical Investments Otherwise. Investopedia requires writers to use primary sources to support their work. VTSAX is an Admiral Shares version of the mutual fund tracking the Total Market Index. As an investment, VTI and VTSAX are completely identical. It appears that the performance of VFIAX vs SWPPX and VTSAX vs SWTSX are almost identical, however, the Tax Cost Ratio on both of Schwab's indexes is higher. I have enough $ in a high yield savings account. This article dives into the three most popular – VTSAX vs VTSMX vs VTI and why we chose them for our portfolios. Since VTSAX covers the entire stock market, it holds all of the stocks that VFIAX holds in addition to stocks outside of the largest 500. Accessed April 2, 2020. Can an Index Fund Investor Lose Everything? 04-26-2020, 01:47 PM. vlcax vs vfiax, At the time of the Brexit vote, I held three funds, VFIAX (S&P 500), VTSAX (Total US Stock Market), and VFWAX (International Stock). Advertiser Disclosure. Vanguard funds VTSAX, VTI, VOO, and VFIAX are the best funds for achieving financial independence. Vanguard Total Stock Market Index Fund (VTSAX), Wilshire 5000 Total Market Index (TMWX) Definition, Put $10,000 in the S&P 500 ETF and Wait 20 Years, Vanguard Total Stock Index vs. Vanguard 500 Index Funds, 5 Things You Need to Know About Index Funds. Two of the investment company Vanguard's most popular products are the Vanguard Total Stock Market Index Fund (VTSAX) and the Vanguard 500 Index Fund (VFIAX). VFIAX. Unfortunately, VTSAX lost all comparisons. SWPPX vs VTSAX. Peds. … The S&P 500 and total stock market index has a very high correlation (greater than 99%); this is because around 75% of the total stock market index contains large-cap stocks such as those in the S&P 500. Walker Richardson. VTSAX vs VTI vs VOO Comparison. The Vanguard Total Stock Market Index Fund could represent all of a portfolio's equity holdings, while the Vanguard 500 Index Fund should ideally be counterbalanced with aggressive growth stocks. The investment returns (with dividends reinvested) from years 2010-2019 are as follows: Here is what an investment of $10,000 looks like visually in 2001, just after the funds were open for investment to the public: As you can see, the returns on both funds are very similar. Accessed April 2, 2020. VFIAX basically = VTSAX, though I do think if you were to hold just one of these funds it should be VTSAX ! VTSAX Fees vs VFIAX Fees No purchase fees, redemption fees, nor 12b-1 fees apply to either VTSAX or VFIAX fund purchases and holdings. Focus – VFIAX was a pioneer when it was launched on November 13, 2000. This fund has more diversification than VFIAX because it invests in a larger array of the US stock market. SWPPX vs VTSAX. Deciding on VTSAX or VFIAX as my main fund (long term 10 years+). The primary difference between VTSAX vs VIGAX is the type of stocks they invest in. I don't know why that requires so much explanation. 7-day free trial: Get unlimited comparisons, and stock, ETF and mutual fund analyses for just $15 a month, without ads. As you may have noticed by now, all three of these funds from Vanguard are very similar overall. VTSAX is a whole lot more diversified(3757 companies VS 365), lower cost(0.05 VS 0.09), has less volatility, and has larger companies in it than VIMAX. Both the Vanguard Total Stock Market Index and the Vanguard 500 Index mutual funds are also available as exchange-traded funds (ETFs). Is there any reason to go with the Vanguard account over Fidelity? But come on, can someone really argue that owning 3,551 stocks makes you better off than only owning 2,895 stocks when most of those companies make up 0.0003% of VTSAX? Your email address will not be published. Index investing is a passive strategy that attempts to track the performance of a broad market index such as the S&P 500. While both can function as suitable core holdings in a stock portfolio, the similar-sounding mutual funds pursue different investment strategies. It holds every publicly traded stock in the market. VFIAX vs VTSAX. I had VFIAX for a bit but decided I wanted more exposure, so I moved the balance to VTSAX. As total stock market index funds, both options allow investors to invest in … It was the first index fund in the industry that offered individuals an affordable opportunity to gain diversified exposure to the S&P 500 market. Otherwise, an investment in a fund that tracks the S&P 500 similar to VFIAX may suffice. The 10 year standard deviation for VTSAX is 15.55. They hold the exact same collection of stocks (every individual publicly traded stock in the U.S.), they have the exact same dividend yield, and they earn the exact same annual returns. VTSAX. First things first. VTSAX vs. VTI: They’re Identical Investments Otherwise. VFIAX vs VTSAX. VTSAX vs VFIAX. However, you will be charged a $20 annual account service fee for each Vanguard Brokerage Account, and each individual Vanguard mutual fund holding with a balance of less than $10,000 in the account. VTSAX: Holds over 3500 (large-, medium-, small-cap) Create send email button … VFIAX VTSAX Segment: U.S. … Re: VFIAX vs. VTSAX Post by ruralavalon » Thu May 05, 2016 2:11 pm I favor Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), for broader diversification and sightly better tax efficiency. Search. VTSAX Pros. Archived. Table of Contents. Index funds generally receive positive returns when held for a long period of time (10+ years). Save my name, email, and website in this browser for the next time I comment. What are the Disadvantages of an Index Fund? I love Vanguard, but you cannot beat a lower expense ratio and no minimum investment. Posted by 1 year ago. This will be close to 35% of my total portfolio. We also reference original research from other reputable publishers where appropriate. This return is almost identical to that of the fund's benchmark, the CRSP U.S. Total Market Index. Start free trial. These specific funds are attractive due to their low expense fees, broad diversification, and potential tax efficiency as a result of low turnover. I had some recent lots of VFWAX purchased June 17th that had capital losses of about $740 and another $220 loss from shares purchases on St. Patrick’s Day. Dividend yield of 1.93%. VTSAX = VFIAX + VEXAX. I later found Fidelity's FXAIX. VTSAX has a lower expense ratio than VWUSX (0.04% vs 0.39%). VIGAX; Fund Inception: 2000: Expense Ratio: 0.05%: Number of Stocks: 297: Top 10 Holdings: 39.1%: Foreign Holdings: 0.8%: Vanguard Growth Index Fund (VIGAX) invests in stocks of large U.S. companies in market sectors that tend to grow more quickly than the broad market. 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