I to am intersted in VTSAX vs VFIAX. VTSAX vs. VTI: They’re Identical Investments Otherwise. 16. The top 10 holdings for VTSAX vs VFIAX are the same stocks but in different percentages. As of this writing, VTSAX holds 3,551 stocks in direct proportion to each company’s share of the stock market, known as its capitalization (cap) weight. VTSAX and VFIAX are two of the most popular index funds in the world. Lastly, VTSAX has double the yield of VIGAX (1.88% vs 0.93%). There’s nothing you can do to exploit this other than buying the dip, which we’ll see isn’t as good of a dip to buy when you only have one fund. This means that VFIAX is just a subset of VTSAX. VFIAX: Vanguard 500 Idx;Adm-1.17% 8.22% 14.88% 17.19% 13.34% 14.76% 13.66% DODFX: Dodge & Cox Intl Stock-1.09% 15.85% 0.28% 2.09% 1.16% 6.65% 4.50% LGILX: Laudus US Lg Cap Gr … For investors looking for a more diversified portfolio, VTSAX is the better choice because it holds a much larger portfolio of securities compared to VFIAX which is limited to holding S&P 500 companies only. VFIAX basically = VTSAX, though I do think if you were to hold just one of these funds it should be VTSAX! You simply get the market’s return. value-priced companies) than being heavy in over-priced securities. With that said, thanks for stopping by and keep it simple! VTSAX vs VFIAX. Not as popular or crowded as the Cliffs of Moher, so if you go to Ireland drive the Ring of Kerry and check these out! Again, my mission is to educate, empower, and guide you to make the best financial decisions possible however I do not know your individual circumstances. Find the latest Vanguard Total Stock Market Ind (VTSAX) stock quote, history, news and other vital information to help you with your stock trading and investing. An investment in knowledge ALWAYS pays the best interest. To see how large-cap dominated VTSAX is, compare its returns with VFIAX (S&P 500 Index Fund). Walker Richardson. VFINX vs VFIAX: VFINX is Vanguard’s S&P 500 Index Fund for Investor Class Shares. See Beating VTSAX, Part 2A – Dividing the Total Stock Market into Thirds for more info on the size effect and the effect of breaking down the stock market by market-cap weight. The outperformance of small stocks over large stocks is known as the size effect. Not bad, but could easily be better. VTSAX hols about 3,100 more stocks than VFIAX. As shown above, the historical performance is relatively the same. What if I tell you that a portfolio of diversified domestic (U.S.) stock index funds of different market-cap weights has a higher expected long-term return than VTSAX? eval(ez_write_tag([[250,250],'firethefamily_com-medrectangle-3','ezslot_0',143,'0','0'])); Similar holdings (domestic and international). This article provides an overview of two commonly held index funds: VTSAX – Vanguard Total Stock Market Index Fund Admiral Shares. There are two ways of viewing this statement: First, the HUGE positive of MCW index funds is that the market’s return is better than MOST mutual funds’ returns and definitely better than picking stocks. The bigger the company in the stock market the more weight it carries in the index fund. Low expense ratio’s (typically less than 0.1%), Statistically outperform actively managed funds, No fundamental or technical analysis necessary. Entities are not to be multiplied without necessity. VFIAX offers exposure to 500 of the largest U.S. companies, which span many different industries and account for about three-fourths of the U.S. stock market’s value. VFIAX vs. VOO: The Basics. First things first. Buying into VTSAX or VTI is the simplest way to build wealth overtime. VTSAX and VIGAX primarily differ in that the VIGAX fund is more focused on growth companies in the U.S. VIGAX also provide much less diversity with only 277 holdings compared to 3535 holdings in VTSAX. Maximal diversification! A lot…, Part 6 – The love affair with VTSAX is a tale of two very different decades. Is there any reason to go with the Vanguard account over Fidelity? If you are considering an Exchange Traded Fund (ETF), take a look at VTSAX vs VTI (ETF).eval(ez_write_tag([[250,250],'firethefamily_com-medrectangle-4','ezslot_3',144,'0','0'])); Vanguard 500 Index Fund Admiral Shares (VFIAX) is the S&P 500 index fund from Vanguard. … Part 2 – Breaking down VTSAX into thirds to maximize returns. Beating VTSAX, Part 1 – What’s Wrong with VTSAX? You simply get the market’s beta. Is VTIAX the best for international stock exposure? But buying VSIAX (a small-cap value index fund) while down 38% is a better buy, especially with its higher expected future return! Below is the comparison between VWUSX and VTSAX. Again, you simply get the market’s return. With VTSAX there is no tilting. Equal-cap-weighted funds have outperformed MCW funds more often than not. Continue reading. Well, I hope I’ve convinced you to put down the pitchforks and torches and check out how this worked out in real life by reading Part 2A and Part 2 to see how much extra return the diversified portfolio produced! Vanguard funds VTSAX, VTI, VOO, and VFIAX are the best funds for achieving financial independence. Ensure that you understand what you are doing as that greatly decreases your risk of losing money on a poor investment decision. The value factor: Market-cap-weighted index funds also negate the value factor. VTSAX gives investors exposure to small-cap, mid-cap, and large-cap stocks, rather than just larger corporations in a typical mutual fund. VTSAX is a market-cap-weighted (MCW) total stock market index fund. Below is the comparison between VTSAX and VFIAX. I have chosen to invest in VTSAX instead of VFIAX for the additional diversification and exposure to small- and mid-capitalization stocks as well as the large-cap stocks, but either choice would serve you just fine. But no, you should NOT expect to outperform a simple, diversified portfolio of index funds. It seems like the same thing, but with lower fees. Take a look at the historical chart below. VFIAX is the Vanguard 500 Index Fund Admiral Shares while VTSAX is the Vanguard Total Stock Market Index Fund Admiral Shares. And how many bonds does it take to match VTSAX’s return? Little more, nothing less. Part 5 – Can you beat VTSAX holding bonds in your portfolio? Below you can see the growth of $10,000 over the past 10-years between VTSAX (yellow) and VFIAX (blue): VFIAX and VTSAX have more similarities than differences. This is known as the value premium. Compare and contrast: VTSAX vs VFIAX. Because no one who’s anyone cares who I am! The returns are 99.99% the same with a correlation of 1 per PortfolioVisualizer. Find the latest Vanguard 500 Index Fd Admiral S (VFIAX) stock quote, history, news and other vital information to help you with your stock trading and investing. Part 3 – Optimizing the Small-Cap Funds by adding a small-cap value fund and a tax-managed small-cap fund. However, I am far from perfect and I recommend that you confirm that what you read on this site is accurate and valid prior to acting on it. Why? Personally, I am going to invest in the VFIAX because this mutual fund mimics the S&P 500 index and Vanguard purchases preferred shares of America’s largest and most successful blue chip companies. This is how you beat the market using the market. This fund has more diversification than VFIAX because it invests in a larger array of the US stock market. Is there any significant difference between the two funds? The fact that they’re both a low-fee index fund from Vanguard is why they’re so similar. While not all stocks in VTSAX are overpriced it doesn’t matter. The content on Keep Inve$ting Simple, Stupid is for educational and motivational purposes only and should not be considered individualized personal finance or investment advice. Value stocks are mispriced stocks that are currently riskier than the rest of the stocks in the market. 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