As an investment, VOO and VFIAX are completely identical. Additionally, here … However if you are super competitive and penny pinching to the max, VOO has outperformed VTSAX in the past 5 years and since inception. VOO has a lower 5-year return than FXAIX (14.32% vs 14.45%). VOO vs. VTI comparisons: including fees, performance, dividend yield, holdings and technical indicators to make a better investment decision. The Vanguard S&P 500 ETF (VOO) has a narrower focus compared to the two other options above. Read more. This was my comparison between VTSAX vs VFIAX! So, in terms of convenience, VFIAX offers an edge over VOO if you’re someone who likes to set up automatic recurring investments. In general, you can’t go wrong with either of these three options. Focus – VFIAX was a pioneer when it was launched on November 13, 2000. How ETFdb.com has selected ETF alternatives to VFIAX: The mutual fund VFIAX has been benchmarked by Vanguard against an index, S&P 500 Index, in its fund prospectus. The difference is 0.01%, and that’s not going to make-or-break your retirement plan. This looks at how they compare and which is best for your personal situation. VTSAX and VFIAX are two of the most popular index funds in the world. That means if you sell some VFIAX. Yield – These are quite similar, with VFIAX coming in at 1.96% and VOO at 1.97%. YOU ARE SOLELY RESPONSIBLE FOR ALL OF YOUR COMMUNICATIONS AND INTERACTIONS WITH OTHER USERS OR MEMBERS OF THE PLATFORM AND WITH OTHER PERSONS WITH WHOM YOU COMMUNICATE OR INTERACT AS A RESULT OF YOUR USE OF THE PLATFORM, INCLUDING BUT NOT LIMITED TO ANY CUSTOMER MEMBERS, INVESTORMINT Partners OR SERVICE RECIPIENTS. VFIAX vs VTSAX. The main difference between these two funds is the fact that VFIAX requires a minimum investment of $3,000 while VOO does not. It’s important to weigh returns, costs, and composition of each fund. Re: VTSAX vs VFIAX « Reply #10 on: June 21, 2014, 11:16:50 PM » In order to imitate the total stock market index you can purchase 81% s&p 500, 13% mid cap, and 6% small cap. That is, if you’d like to automatically invest a certain amount each week or month, you can only do so with VFIAX, not VOO. From an industry perspective, VFIAX is quite diverse, as it covers a collection of businesses that represent approximately 75% of the value of the US stock market. Vanguard vs Schwab comparative analysis provides an insight into diversification possibilities from combining Vanguard and Schwab into the same portfolio. However, there are a few differences between the two funds. Life At 25, VOO launched on September 7, 2010, with a very similar focus – to offer individual investors affordable access to the S&P 500. First things first. Many Vanguard index funds are eligible to convert to ETFs as Vanguard has a unique share class structure that allows this process to occur without taxes if it is completed while you hold … And one last thing: the dividend yields are massive.Full story inside. Return VFIAX Category. This is nearly five times as high as that of VOO. The expense ratio for VOO and VFIAX are 0.05% while it is 0.17% for VFINX. Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer. This index is comprised of the 500 largest U.S. companies weighed by market-cap. Furthermore, VFINX is closed to new investors. VTSAX has a more total world diversification. Close. Specifically, investors take on risk of volatility in the stock market. I have a few questions regarding ETFs v. Mutual funds. Conversely, since VFIAX is a mutual fund it isn’t priced until the trading day is over, so you don’t know the price until after you’ve placed your trade. This means that if you want to trade stocks quickly in real-time then you’d need to invest in an ETF. Below is the comparison … Assets: $500.9 billion Holdings: 508 stocks Dividend Yield: 2.03% Expense Ratio: 0.03% The Vanguard S&P500 ETF (VOO) is one of the biggest index funds that track the S&P500, with $500 billion in assets under management. While you can invest in this type of index fund on any major financial platform (Fidelity, Charles Schwab, Merrill Lynch, etc.) Both options are suitable for investors who prefer a focus on organizations with proven track records, because both funds limit their holdings to S&P 500 companies. With so many options, it can be a challenge to determine which fund best fits the goals of your portfolio and your preferred investment strategy. The fund, as of April 30th, 2020, has $496.3 billion in total net assets. Get answers to common ETF questions - invests in the 500 stocks that comprise the S&P 500 index, in market cap-weighted proportions. VTSAX hols about 3,100 more stocks than VFIAX. Vanguard is a leader in low-cost equity funds, but that doesn’t mean all products are created equal. As Vanguard explains on, As we’ve seen, VOO and VFIAX are identical in terms of, Three Life Lessons from “How to Do Nothing”, Here’s How the S&P 500 Has Performed Since 1928, made a bet with asset management firm Protégé Partners. Financial services providers and institutions may pay us a referral fee when customers are approved for products. Although both track the S&P 500 Index, they differ in … VFINX and VOO is the same fund, but different class (Mutual fund vs ETF). This made it clear to the world that Buffett was a huge advocate of the S&P 500, a stock market index that tracks the 500 largest publicly traded companies in the U.S. and captures about 80% coverage of the total U.S. market cap. 3-Month 3.88% 5.24%. My next contribution will put me over $10,000 allowing me to purchase VFIAX. Actually VOO has expense ratio of 0.03% vs 0.04% for VFIAX - source Vanguard. Just as Buffett predicted, a simple investment in a low-cost S&P 500 index fund outperformed even the brightest active managers on Wall Street. Plus, it’s simple, convenient, and worry-free. This article examines the differences between VOO and VTI and which one is likely to be a better investment. VFIAX… As we’ve seen, VOO and VFIAX are identical in terms of what exactly you’re investing in. YOU AGREE TO TAKE REASONABLE PRECAUTIONS IN ALL COMMUNICATIONS AND INTERACTIONS WITH OTHER USERS OF THE PLATFORM AND WITH OTHER PERSONS WITH WHOM YOU COMMUNICATE OR INTERACT AS A RESULT OF YOUR USE OF THE PLATFORM, PARTICULARLY IF YOU DECIDE TO MEET OFFLINE OR IN PERSON AND GIVE OR RECEIVE INVESTORMINT Services. I know that the VFINX is basically Vanguard's version of the S&P 500 in the form of a mutual fund, while VOO is the same thing but in the form of an ETF? One of the main differences between VOO and VFINX is that VOO is an ETF while VFINX is a mutual fund. VFIAX vs VTSAX. I believe the trust’s long-term results from this policy will be superior to those attained by most investors—whether pension funds, institutions, or individuals—who employ high-fee managers.”. Investors relying on a broker outside of Vanguard will save on trading fees as they add shares. INVESTORMINT MAKES NO WARRANTY THAT THE PLATFORM OR INVESTORMINT Services WILL MEET YOUR REQUIREMENTS OR BE AVAILABLE ON AN UNINTERRUPTED, SECURE, OR ERROR-FREE BASIS. After all, picking the right vehicle is what leads to underperformance or outperformance of the market, and few professionals can consistently beat index returns; it’s why index investing a compelling strategy. You will get identical results. This wasn’t the first time that Buffett made it known just how much he loved the S&P 500 either. Could Your Breast Milk For Sale Make $1,800 Per Month? The following chart, taken from the 2017 Berkshire Hathaway annual letter, shows the annual performance of the S&P 500 during this ten-year period as well as the five “fund of funds” handpicked by Protégé: The S&P 500 absolutely destroyed these funds as a whole. Total Net Assets of $500.7 billion. The index has a 16.8% trailing 1-year total return. If you qualify for admiral status, then the expense ratio (VFIAX is 0.04%) will be comparable. Vanguard S&P 500 ETF (VOO) Vanguard is the largest provider of index funds in the world. Given that the SPY has a Net Expense Ratio (NER) of 0.094% versus 0.4% for IVV, and 0.3% for both VOO and VTI, that could be investors doing some … Vanguard 500 Index Fund Admiral Shares (VFIAX) is the admiral version of the Vanguard S&P 500 ETF (VOO). © 2017-2020 Investormint. Similar ETF Distribution (w/ REIT), Vanguard Mutual Funds — Diversification vs Share Class. Before you get too excited, you need to qualify for this fund class. Its index fund counterpart would be the Vanguard 500 Index Fund (VFIAX), the new, Admiral version of the first index fund ever created. Over the last three years, $100 billion has flowed into the three largest S&P 500 ETFs—SPDR S&P 500 (SPY), iShares S&P 500 (IVV) and Vanguard 500 Index Fund (VOO). 1-Year 17.41% 14.42%. 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