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VTSAX vs VTI

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  • VTSAX vs VTI

    I was researching Vanguard's Total Stock Market Fund and found it listed as VTSAX at $72/share and VTI at 149/share. I realize the VTI is an ETF and the VTSAX is not but they are the same fund. Why is there such a wide disparity in the price? It would seem to make more sense to purchase VTSAX over VTI . I must be missing something. I hope someone is able to clarify this for me so I could determine which would be the better option to purchase.

    Thanks.

    JMD

  • #2


    I must be missing something.
    Click to expand...


    yes.

    they are the same fund, but different shares.


    It would seem to make more sense to purchase VTSAX over VTI
    Click to expand...


    why? heres a hint: which is worth more? $149 of VTSAX @ 72/share, or $149 of VTI @ 149/share?

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    • #3




      I hope someone is able to clarify this for me so I could determine which would be the better option to purchase.
      Click to expand...


      do you know what the difference is between an ETF and MF? that will determine which one you buy.

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      • #4


        Why is there such a wide disparity in the price?
        Click to expand...


        they don't have the same price but they move at the same percentage every day.   there isn't really a major difference for a buy and hold investor.   if you like to daytrade go with the ETF.  I prefer the mutual fund because I can automatically purchase them.

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        • #5
          If you want to be able to buy and sell throughout the day, buy the VTI etf. In theory, it could, in the future, give you slightly better protection from capital gains distributions.

          Otherwise, the mutual fund is probably more convenient to buy, including the ease to automate purchases.

          They will perform the same over time, as they are just different vehicles or structures (one an etf, the other a mutual fund) that are invested in the exact same pool of equities.

           

           

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          • #6
            Pound of feathers. Pound of bricks.

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            • #7
              There are some advantages from a transaction standpoint. Most are covered in the link below.  Investment performance, same investment performance.

              https://www.etf.com/sections/index-investor-corner/vanguard%E2%80%99s-mutual-funds-better-its-etfs?nopaging=1

               

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              • #8
                To the OP’s question, this is how I think of it. I’m sure an economist would have a better way of explaining it and my version is probably way over simplified but it’s in essence correct...

                VTSAX and VTI are different funds that track the exact same thing and are made up of the exact same mix of stocks, but they were not started at the same time and their size and trading volumes are therefore different. Those differences in volume of shares are what account for the differences in share price. But, if you own $100,000 of VTI it is the exact same investment as $100,000 of VTSAX. The number of shares is irrelevant.
                By your reasoning (thinking that the cheaper share price is somehow a better deal), a single share of Berkshire Hathaway “A” would be a bad deal (currently these trade for around $306k per share!). But, in fact, if you own 306k of Berkshire “B”, you have exactly the same investment as 1 share of the A. Number of shares doesn't matter. The market value of your shares is all that matters.
                Think of it in terms of retirement...if you were retired and needed to take out 100k this year for living expenses, you would need to sell more shares of VTI then VTSAX to get your 100k. It doesn’t actually matter which fund you sell, the dollar amount you need is the same.

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                • #9
                  The op has started 4 threads and never replied to any of them .
                  Looks like more of the same.

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                  • #10
                    I have vti in my taxable because it had a lower initial value to invest, only $1k. I could convert to vtsax but don't see a reason for it.

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                    • #11
                      Thanks for everyone's input especially the link to ETF.com. I didn't think there was much of a difference between the two but I just wanted to be sure there wasn't an issue that I was overlooking.

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