Fidelity's New 0% Expense Ratio Mutual Fund. Expense Ratio. VTSAX vs VTI vs VOO: Vanguard offers 100+ low-cost and top index funds, ... Plus, their costs stay very low thanks to an extremely low expense ratio. Over 20-years of history of returns. VTI is the ETF version which you place limit/market orders on to trade like a stock, it adds a bit of hassle for having to set up orders every month for a slightly lower expense ratio of 0.03%. Both the Vanguard Total Stock Market Index and … One of the most attractive aspects of VTI, in addition to the extremely broad base of holdings and balance of exposure, is the price. ETFs trade like stocks. That is great. Over the last 5 years, VXUS returned way less than VTI: 8.78% vs. 15%+. Which is a better fund to invest in for the short term, VTI (ETF) with an expense ratio of 0.04% or VTSMX with an expense ratio of 0.14%? Even compared to other Vanguard mutual funds which average around 0.10% in annual fees, VTSAX is has a clear advantage. That sucks! Basically, for every $10,000 that you put into a VT, for example, $8 of that will go towards administrative purposes. VTSAX gets mentioned quite a lot, while I do not see much about VTI. I just did a Roth conversion to Vanguard of a small 403(b) from my previous employer (<10,000), and I won’t cross over the $10,000 mark for a few months. Monday through Friday 8 a.m. to 8 p.m., Eastern time Learn everything you need to know about Vanguard Total Stock Market ETF (VTI) and how it ranks compared to other funds. VTSAX was created in 1992 and currently has an expense ratio of only 0.04%. Therefore, it will be hard to incorporate this into your portfolio if you did not already have an account with Fidelity. There is no investment minimum with VTI, so it is an excellent option for Vanguard investors who do not have $3,000 to invest in VTSAX. VTSAX is the clear winner. As an investor comparing SWPPX vs VTSAX, I would prefer to go with Schwab. Below is the comparison between SPY and VTI. VTSAX vs VTI. VXUS expense ratio is 0.11% vs. VTI’s 0.04%. An initial $10,000 investment turns into $714,671 for FZROX and $733,569 for VTSAX, a difference of $18,898 or about 2.6%. This is an excellent value for such as well-diversified fund with over 3,500 securities in its holdings. VTI has a lower expense ratio. Mutual funds fill at the end of the day. And those are just fractions of a percent! Assets: $840.9 billion Holdings: 3551 stocks Dividend Yield: 1.95% Expense Ratio: 0.03% Vanguard’s Total Stock Market ETF (VTI) is similar to VOO in many ways, but the main difference is that it holds a much broader range of stocks.. VTSAX has a higher expense ratio than VTI (0.04% vs 0.03%). VTSAX charges an extremely low expense ratio of 0.04% and requires a minimum investment of $3,000. If you are interested in other fund comparisons, check out the following: VTSAX vs VFIAX; VTSAX vs VTI For our intents and purposes they appear to be basically the same product. On the other hand, ETFs trade only during market hours. FZROX does not have an ETF. Neither have distributed capital gains. VTI has an expense ratio of 0.03%. VTI: Vanguard Total Stock Market ETF. Despite VTSAX’s 0.04% expense ratio, VTSAX only trails the … Composition of VT vs VTI. The tax loss basis is slightly lower (4-17 bps, depending on where you read), but he also pointed out that as of last prospectus, VTI lowered their expense ratio to 0.03. VTSAX has become one of the most popular index funds because of it’s strong diversification and ultra-low expense ratio. For example; 70/30, 80/20, 60/40 or something along those lines. A long history of returns. A $10,000 portfolio compounded annually with an average of even 7% growth suffers from higher expense ratios. Reply Like The only real benefit of VTI is slightly lower expense ratio. It’s the opposite of compound interest. This means their tax efficiency has been identical. It has a slightly higher expense ratio, but Vanguard automatically transfers you to the cheaper VTSAX when you have $10,000. I found VTSAX simpler, so that’s what I went with. Because Vanguard is a gentlemen like that. When I have more than $10,000 in the account, I will sell whatever I’m holding and buy VTSAX. VTSAX has an expense ratio of 0.04%. The only difference between VTI and VTSAX is how you buy it. VTSAX has an expense ratio of 0.04%. I have FZROX in my IRA at Fidelity and VTSAX in my taxable account at Vanguard. ... VTI and VTSAX have had identical pre-tax returns and identical payouts with identical percentage of qualified dividends. But that should not be the reason not to invest in VXUS. This infographic is the property of How To FIRE LLC. VTI is the ETF analog of VTSAX, virtually identical with same 0.04% expense ratio. What’s the difference between VTSAX and VTI? Similarities between VFIAX and VTSAX: Expense ratio’s of 0.04%. VTSAX has a higher 5-year return than VTI (18.37% vs 17.92%). Full stop. Many of IVV’s top holdings are the same as SCHB, VTI, and VOO. The USAA Portfolio with an expense ratio of .25% ends up with $2,902,809. VT’s expenses ratio is .08%, and VTI’s expense ratio is .03%. For those hyper sensitive to expense ratios, this cost has the net effect of a 0.15% inefficiency to the market. These two financial products, VTI and VTSAX, are essentially the same thing, with the same 0.04% expense ratio. VTI – With the same expense ratio as VTSAX, this ETF was our pick until we could reach the minimum investment of $3K for VTSAX. So, while IVV trades the same as those ETFs, you should look at other factors as well. VT and VTI are both exchange traded funds; Both require a minimum investment equal to the price of one share; The funds have the following differences: VT has a slightly higher expense ratio (.09%) than VTI (.03%) VT holds significantly more stocks (8,178) than VTI (3,611) VTSAX has an ETF equivalent. It follows the CRSP US Total Market Index, which includes all the stocks in the S&P500 plus over 3000 additional stocks. Interestingly, the ETF version of VTSAX – VTI – has an even lower expense ratio of only 0.03%. Expense Ratio: 0.04%. VTSAX vs VTI: Mutual fund vs ETF While there are many technical differences between an ETF and mutual fund , for our purposes, just understand that ETFs tend to be more easily and quickly tradable. >$3,000 investment. Regardless of what simple strategy you choose to implement, before investing, it’s best to be clear on your long-term plans and goals. I know that they both have rock-bottom low expense ratios, and that it is just one basis point, but I would have expected VTSAX to have a lower expense ratio due to its higher minimum investment ($3,000 for VTSAX vs. $149.05 for one share of VTI). ETFs vs Mutual Funds. It loses $220,869, or 7.1% of the portfolio to fees over the 40 years. The biggest difference is that lower expense ratio which really could add up over time. Since most people buying VTSAX are buy-and-holders, an ETF isn't really any more convenient. SPY has a lower 5-year return than VTI (16.05% vs 16.73%). If you're already a Vanguard client: Call 800-888-3751. Over the last 10 years, VTSAX has returned an average of 10.1% per year as of March 31, 2020. VTSAX is largely made up of Microsoft, Apple, Amazon, and Google but also offers exposure to over 3500 stocks . VTI has an expense ratio of 0.03%, which is 0.01% lower than VTSAX. VTSAX is a mutual fund, whereas VTI is an ETF. If you calculate what a difference that could make over the long-term you’d probably be surprised. SPY has a higher expense ratio than VTI (0.09% vs 0.03%). I love Vanguard, but you cannot beat a lower expense ratio and no minimum investment. Vanguard Total Stock Market Index Admiral Shares have an expense ratio of 0.05% and a minimum initial investment of $10,000. Both SPY and VTI are ETFs. Large blend holding category. Winner: VTSAX There is 1 mechanical difference: VTI is an ETF and VTSAX is a mutual fund. Below is the comparison between VTSAX and VTI. $3,000 minimum investment. It has over $122 billion in assets and actually has a slightly lower expense ratio (0.03%) than VTSAX. It’s compound fees working against you! It is VTI. I always focused on expense ratio primarily. SWPPX vs VTSAX. VTSAX on the other hand is a bit easier to buy -- at least until Vanguard supports fractional shares and auto-investing in stocks/ETFs (which they might never). VTI can potentially be useful as a tool for establishing quick exposure to risky assets, though most shorter-term traders with that objective will gravitate towards products such as SPY instead. The expense ratio is not quite as low as that of some competitors in the index fund space. Similar holdings (domestic and international) Foreign holdings of 0.4%. $3,000 Minimum Investment VTSAX used to have a minimum initial investment of $10,000, but this changed to $3,000 in 2018. Cheaper is better. vtsax/vtiax vs. vtwax I'm curious to what everyone's opinions on what you think would be the best allocation for VTSAX/VTIAX would be for a portfolio with a 30-40 year time frame in a Roth IRA. I decided to call Vanguard and they told me I could convert VTSAX to VTI (but not vice versa) in a non-taxable event. 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