Both the Vanguard Total Stock Market Index and the Vanguard 500 Index mutual … Personal Finance. . Over the last 10 years, VTSAX has returned an average of 10.1% per year as of March 31, 2020. In this case, the expense ratio is almost the same, only differing by 0.01%. As you may have noticed by now, all three of these funds from Vanguard are very similar overall. Index funds are bought after the market closes and the price settles. The smallest exposure are basic materials energy and utilities. First up: annual returns. They have different fund numbers and track a different index. As illustrated above VTSAX is comprised of more than three-quarters of large-cap stocks and 17.5% of mid-cap companies. This is especially beneficial when it comes to stocks with high prices like Amazon, Google, and Tesla. Plums and Pitfalls From Abroad. Small-cap companies make up a minority of less than 10%. VTSAX has a more total world diversification. Vanguard S&P 500 ETF (VOO) received a big endorsement when Warren Buffett himself, VOO is largely made up of Microsoft, Apple, Alphabet, Amazon, and Facebook, but also provides exposure to, VOO is an exchange-traded fund which means there is. VTSAX… This represents pretty much exactly the equity market capitalization of the entire U.S. stock market, which is exactly what you would want in a fund aiming to emulate that. VOO did slightly outperform VTSAX however, past performance isn’t an indication for future returns. Most of the personal finance literature is written from a US perspective and as a result suggests holding US domiciled funds like the SPY, VOO, VTI/VTSAX, VXUS/VTIAX and BND among … Wall Street Profiles: Raj Rajaratnam, Galleon Group. This should be of no surprise since the index this fund tracks only includes the 500 largest companies by market cap. The Vanguard Total Stock Market ETF is the ETF alternative to the world's largest mutual fund, VTSAX. Admiral Funds Have A Minimum Investment. Plus having to manage about 3,500+ stocks in a fund can increase costs quite a bit. VTSAX vs VTI vs VOO Comparison. The determination between VFIAX vs VOO for passive investors may seem confusing. Trade will be the toughest test for Biden’s foreign policy After keeping fees to a minimum, you can work on increasing your savings rate and Prioritizing Your Investments. They have the exact same holdings, so what’s the difference? So, either option is a great investment for financial independence. What is quite striking when looking at the above chart, is that there are not many years when VTSAX has actually outperformed VOO. This can lead us to believe that the long tail of 3,500 smaller companies that are included in VTSAX tend to shift towards those two industry sectors. This means changes in these 10 stocks will affect VFIAX more than VTSAX. VTSAX is one of the largest index funds in the world. This becomes apparent when looking at the annualized volatility of 13.69% for VTSAX and 13.13% for VOO. However, they are very similar in their performance returns over 10 years. VTSAX: Tracks the performance of the CRSP US Total Market Index; Has an expense ratio of 0.04%; $3,000 minimum initial investment; Holds 3535 stocks; VOO: Tracks the performance of the S&P 500 Index; Has an expense ratio of 0.03%; No Fractional Shares; Holds 508 stocks VTSAX vs VOO Performance. They'll track closely though as the S&P500 make up around 80% of the total market. This index is probably the most well-known U.S. stock market index. A Trading Strategy with a 95% Win Rate? 1-Year VOO 9.40% Benchmark 9.50%; 5-Year VOO 10.86% Benchmark 10.91%; Overall, the total stock market approach has historically been more successful. Then, you will be well on your way to Financial Independence and Early Retirement! VTI vs. VOO: Market Sectors. When investing in a Vanguard fund you basically also become a shareholder in The Vanguard Group, Inc. and thus a part owner. At $134 billion under management VTSAX is one of the largest mutual funds in the world. Compare fees, performance, dividend yield, holdings, technical indicators, and many other … Latest News /news/latest; 11:22p. Once you save up the $3,000 minimum, each investment after that does not have a minimum. The primary difference between VTSAX and VOO is that VTSAX is an index fund while VOO is an Exchange Traded Fund (ETF). I am on a path toward financial freedom. Share This With The People You Care About! Here is how their performance compares over the last 10 years: As you can see from the chart, they perform almost identically, with VOO outperforming slightly. The difference between 3.95% and 3.79% may not seem like a lot but on a monthly basis a deviation of 0.16% can make a difference. Total Net Assets of $500.7 billion. If you have these tendencies then an index fund might be a better option for you. As it is with the entire U.S. market, technology stocks dominate VTSAX as well at more than 20%. VTSAX also offers more diversification since it holds about 7 times more stocks. Get All My Free Resources For Financial Independence! This can play a role if you are trying to balance your portfolio’s exposure to certain industries. ETFs are also available to trade at anytime the market is open. We use cookies to ensure that we give you the best experience on our website. In comparison, if you can afford to invest more than the minimum, it’s usually a better option to choose admiral index funds because they have a lower expense ratio. When looking at some years with negative overall market conditions it becomes clear that VOO tends to fare way better than VTSAX. Especially for a mutual fund, 0.04% is almost unheard of. VOO has the lower expense ratio. 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