Both VTSAX and VTSMX are mutual funds. 5. However, Vanguard’s patented heartbeat trading system allows them to treat the ETF as a share class of an identical mutual fund, VTSAX in this case. VTSAX is an Admiral Shares version of the mutual fund tracking the Total Market Index. Vanguard Total Stock Market ETF (VTI) is the ETF version of the world's largest mutual fund, VTSAX.. VOO expense ratio is 0.03%, which is considered low. VOO has a lower expense ratio than VTSAX (0.03% vs 0.04%). VTI has a 7.97 percent compound annual growth rate ( CAGR) compared to VTSAX’s 7.95 percent growth rate. You should expect higher performance of more volatile funds, because they are riskier. With an expense ratio of 0.04 percent and exposure to more than 3500 stocks, it makes a solid core holding for a diversified mutual fund portfolio. Thus, VTSAX comes out ahead by $131. The bid-ask is a problem if you trade frequently. However, you can wind up with fractional shares due to Dividend Reinvestment Plans (DRIPs). VTI currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #3 of 118 ETFs in the Large Cap Blend ETFs category. In other words, if you’re happy with the way the fund is built, understand the fund’s goals, grasp the related costs of operating the fund, and still want to pour your earnings intoâI think you’re good to go. For example, VTI is 33% more expensive than SWTSX, ITOT and SPTM. Plus I already hold some VTSAX in taxable so it seems cleaner/simpler to stick with it. That way you can make the best decision for your future as you strive for financial independence. The fund, as of April 30, 2020, has $822.4 billion under management. Moreover, there are a few US tax traps which make investing in US funds unattractive for some European investors. A low fee and a reasonably representative portfolio make the fund well-positioned to do well in the future. 16. If you already have an account with one of the large investment houses, itâs probably best to purchase their VTSAX clone fund rather than pay fees to own Vanguardâs or open an account at Vanguard. The cost ratio for VTSAX is also 0.01 percent higher than for VTI. But be careful–do your diligence before investing in those funds. Historical returns for VTI and SCHB are very comparable. From Proj Omni: The Vanguard Total Stock Market ETF (ETF:VTI) offers investors diversified exposure to the US stock market. VTI is not more tax-efficient than VTSAX. Curious what folks think I should do. I was researching Vanguard's Total Stock Market Fund and found it listed as VTSAX at $72/share and VTI at 149/share. VTSAX is might be more convenient for automatic investments and dividend / capital gain re-investments, because it’s a mutual fund. So, whatâs the difference in VTSAX vs VTI? VTI is not more tax-efficient than VTSAX. #1. VTSAX is a mutual fund, whereas VOO is an ETF. Using the M* tax cost ratio, VTCLX seems to be a bit lower = better (0.66 vs 0.73), suggesting its post-tax return will be better. If you’re planning to retire early and intend to live off dividends, that schedule might matter to you. VTSAX Fees vs VFIAX Fees No purchase fees, redemption fees, nor 12b-1 fees apply to either VTSAX or VFIAX fund purchases and holdings. What is the VTI yield? Ultimately, FZROX and VTSAX should perform almost identically–I wouldn’t fret too much if buying one vs the other means having to open a different brokerage account or pay transaction fees. The 3. VTSAX vs VTI vs VOO Comparison. VTI … VTI annual turnover is 4%, as opposed to the average of 58% for large-cap ETFs. VTI tax-cost ratio is 0.49%. If you have a Fidelity investing account, thereâs no great reason to make any extra effort to obtain VTSAX instead of FSKAX. Your email address will not be published. SCHB expense ratio is lower than VTI’s: 0.03% (vs. 0.04% for VTI). Stick with what’s easy and least expensive to execute. VTI and VTSAX have the same expense ratio: 0.04%. The only difference between VTI and VTSAX is how you buy it. It’s *really* hard to just do nothing to your investments and let them ride for many years and often, decades. Some important comparison metrics here are expense ratio, issuer, AUM, and shares outstanding, What is VOO tax efficiency (tax-cost ratio)? Below is the comparison between VTSAX and … Tax implications, transaction fees, and the ease of access to either fund should play a greater role than any performance difference between VTSAX and VTI. I found VTSAX simpler, so that’s what I went with. The primary difference between an ETF vs stock is that an ETF is a group of securities. SCHZ (U.S. One key difference between FZROX vs VTSAX is that FZROX doesn’t own the entire US stock market like VTSAX does, though it attempts to emulate the same results. 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