Press J to jump to the feed. We can see that both funds are mutual funds, both have an expense ratio of 0.04% (if you invest $10,000 into either fund you will pay $4 each year in management expenses), both require a minimum investment of $3,000, and both are classified as “large blend” funds.

If you like the idea of investing in many companies to give you diversification, then VTSAX has that, because VTSAX contains VFIAX (more or less) as well as other companies not in VFIAX.

For the most diversification among US stocks, choose VTSAX. VFIAX contains only large-cap stocks and since VTSAX is market-cap weighted, it’s composed of about 75% large-cap stocks.

And why do you recommend doing away with something like VDIGX?
I can worry about smaller cap funds later, like you said. You should consider if you want international (and if you do total international should be what you get). The details can be viewed on Vanguard website if you type the symbol into their search box. VGTSX is closed to new investors. Because VFIAX type companies are also heavily represented in VTSAX, you will probably find if you compare graphs of their performance over the past years that they track fairly closely.

I'm in my late 20s and recently started investing using a Vanguard account. I am exploring the idea of opening a mid-cap fund down the line (a few months hopefully) to add some diversification and make up for the absence of VTSAX. Type the symbols in at Yahoo Finance for example to compare. VFIAX blue pill vs VTSAX red pill But for some reason, I thought I remembered many people recommending to invest in the S&P 500.

Or would it be sound to just put the $5k into my existing VFIAX assets? regarding 500 index vs total stock market - total stock market is better diversified but dominated by the s/p500. VTSAX is not a good fund for small cap exposure (it has small caps, but it is so dominated by large caps it will more follow the s/p500). Newbie here - so what would you have done if you could get a do-over when you started out? The biggest difference between these two funds is their composition: VTSAX holds far more stocks than VFIAX. The two indices diverged the most in the 1950s when the S&P 500 provided 1.2% higher annual returns compared to the total stock market. an IRA). Their top twenty holdings are likely duplicate stocks too. If you choose to invest in VTSAX, this means you certainly won’t be alone in carrying about its performance. I have no debt (credit, loans, etc) been saving 75% of my paychecks. That is, VTSAX includes all 509 stocks that are in VFIAX as well as an additional 3,128 smaller stocks.

The price per share is not worth considering at all. Sharing insights on how to grow wealth and gain freedom. Their performance has pretty much been similar with the VFIAX outperforming VTSAX the last decade. It’s a completely free tool that makes it easy to track the value of your investments and ensures that you’re paying the lowest fees possible.

Is having both redundant? This also explains why both funds are classified as “large blend” index funds.

I recently received $5k that I would like to use for my Vanguard account. But seriously the chart and all the responses did point to VTSAX. Do you trust to put your money into a fund with 500 stocks that represent the S&P or a fund that is … New comments cannot be posted and votes cannot be cast. There are 509 stocks in the index, though, because some companies have more than one “class” of stock. By owning this one index fund, you can own a piece of every publicly traded stock in the U.S. Moved everything into WAX about a year ago, it’s nice for the peace of mind. I understand that no one has really beat the market in general. It’s important to note that since VTSAX is market-cap weighted, the 3,128 smaller stocks actually only comprise a small portion of the total fund. VTSAX includes largecap, midcap, and smallcap. Press question mark to learn the rest of the keyboard shortcuts, http://forum.mrmoneymustache.com/investor-alley/vtsax-vs-vfiax/.

Each month he uses their free Investment Checkup tool and Retirement Planner to track his investments and ensure that he's on the fast track to financial freedom.His favorite investment platform is M1 Finance, a site that allows him to build a custom portfolio of stocks for free, has no trading or maintenance fees, and even allows him to set up automated target-allocated investments. We are charged $25/yr/fund so I only want to hold one. There are only two differences between the two funds: 1. By using our Services or clicking I agree, you agree to our use of cookies. VTSAX is composed of 3,637 individual stocks, compared to just 509 for VFIAX. to track your investments with their free Investment Checkup tool and Retirement Planner. That being said you should just stick with total stock market until you have a lot more invested - then you can worry about small/mid caps. Thanks everyone.

2.

The ticker symbols for those ETFs are VTI (Vanguard Total Stock Market ETF) and VOO (Vanguard S&P 500 ETF) and I wrote, No matter which funds you decided to invest in, I recommend using. In the meantime, you could diversify a little by putting, say, 30-35% of your portfolio in VGTSX VTIAX (intl stocks) and 5-10% in VBTLX (bonds). Thus, VFIAX is composed of the 509 largest stocks in the U.S. On the other hand, VTSAX is composed of every single publicly traded stock in the U.S. At the time of this writing, that amounts to 3,637 individual stocks. Thus, the performance over the years has been nearly identical for each fund.

I made a very similar (mild) mistake when I started investing in ETFs, by investing in VTI (like VTSAX), VOO (like VFIAX) and VYM (high dividend yield s&p). For example, Berkshire Hathaway has class A and class B shares. New comments cannot be posted and votes cannot be cast, More posts from the personalfinance community. Or put another way, VTSAX is a collection of many stocks (more on that later) that track the American stock market as a whole. VTSAX holds every publicly traded stock in the U.S. while VFIAX simply holds the largest 509 stocks. See image below, showing past 9.5 years compared. Consider VT/VTWAX (Total World Stock Market). If you want small cap exposure get a separate small cap index fund.
In fact, about 75% of VTSAX is composed of stocks in the S&P 500. VTSAX: Holds over 3500 (large-, medium-, small-cap)

Well damn if you put it that way, I have to take the red pill, right? As a side note, I also purchased VDIGX at the minimum requirement of $3k last Sunday. Join the Income Community today to learn how you can create your own profitable websites from scratch.

Larimore explains that investors can get the benefits of index-fund investing through owning one simple fund: A total stock market index fund. The more comprehensive VTSAX is a newer offering than VFIAX. Please contact the moderators of this subreddit if you have any questions or concerns.

3. However, I'm starting to regret not initially purchasing VFIAX instead. If this makes sense, what do I do with VDIGX? Or should my focus start being on VTSAX for some smaller-cap exposure?

I'm only looking to play it simple and invest in only a few index funds once I have enough capital to do so. The choice between these two funds is a matter of principle imho. The Admiral share tier, VTIAX, is the new entry level with a $3,000 minimum initial purchase.

If this is taxable then you cannot sell/exchange to another fund without causing a taxable event.

VFIAX, VTSAX, and VDIGX are all redundant.


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