Or should I use it to purchase VTSAX? New comments cannot be posted and votes cannot be cast.

Total Net Assets of $500.7 billion. To answer this question, let’s compare two mutual funds offered by Vanguard: VTSAX – Vanguard Total Stock Market Index Fund Admiral Shares, VFIAX – Vanguard 500 Index Fund Admiral Shares. As the name suggests, the S&P 500 is composed of the largest 500 publicly traded companies in the U.S. Is having both redundant?

VFIAX contains only large-cap stocks and since VTSAX is market-cap weighted, it’s composed of about 75% large-cap stocks.

Index funds offer maximum diversification through holding thousands of individual stocks. Moved everything into WAX about a year ago, it’s nice for the peace of mind. Larimore explains that investors can get the benefits of index-fund investing through owning one simple fund: A total stock market index fund. When you calculate your total portfolio, they will both be categorized as US Equity Market. an IRA). First, let’s check out some basic information about each fund: Note: You can find the information above on the Vanguard profile pages for both VTSAX and VFIAX.

Outside of that decade, though, both indices offered returns within 1% of each other. Vanguard 500 Index Fund Investor Shares (VFINX) and Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) are mutual fund investment shares that are managed and sold by The Vanguard Group, a leading American investment firm. Note: You can find the information above on the Vanguard profile pages for both, In addition, most people don’t realize just how large the largest stocks in the S&P 500 are relative to the other stocks in the index.

One last thing to mention is that there are equivalent ETF versions of each of these index funds that don’t require a minimum $3,000 investment.

For example, at the time of this writing the top 10 holdings for VFIAX, To further understand just how massive the largest stocks are relative to all other stocks, check out this, One last thing to mention is that there are equivalent ETF versions of each of these index funds that don’t require a minimum $3,000 investment. 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. Both the Vanguard Total Stock Market Index and …

However, investing titan Warren Buffett frequently recommends a different index fund for the average investor: a low-cost S&P 500 index fund. I see. The Bogleheads’ Guide to the Three-Fund Portfolio, frequently recommends a different index fund for the average investor, Here’s How the S&P 500 Has Performed Since 1928. We’ve seen that the biggest difference between VTSAX and VFIAX lies in their composition. You are in your 20s so assuming you really (truly) can hold through major market crashes then you are probably okay for the next 5-10 years with a very-high risk 100% stocks portfolio but I would start looking into asset allocation and balanced portfolios, particularly how they substantially reduce risk without sacrificing much return in exchange for that protection. These 3,128 smaller stocks are known as mid-cap and small-cap stocks since their market capitalizations are smaller than the large-cap stocks in the S&P 500 index fund. For example, Berkshire Hathaway has class A and class B shares. Thoughts on this vs a Vanguard target fund (2060/VTTSX) as the only holding in my 401k?

Thanks for your input!
So these funds are very similar.

tl;dr: this is nonurgent, but would like to know more of the process of picking one over the other using specific examples. Sharing insights on how to grow wealth and gain freedom. I would pick one and just stick with that (my recommendation is total stock market, either one is fine). If this is taxable then you cannot sell/exchange to another fund without causing a taxable event. For example, at the time of this writing the top 10 holdings for VFIAX account for 22.7% of the entire fund: To further understand just how massive the largest stocks are relative to all other stocks, check out this interactive visualization that lets you see how large the biggest stocks are relative to the smallest stocks in terms of market cap. Press J to jump to the feed. International is the exposure you need more of!


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