Vtsax Vs Sp500
I realize that the s p 500 only contains the largest 500 publicly traded companies in the u s.
Vtsax vs sp500. Depends on your definition of better and long run. Bogle noted that trying to determine whether a total stock market fund is better than an s p 500 fund. Vtsax charges an extremely low expense ratio of 0 04 and requires a minimum investment of 3 000. Vtsax is all us companies so you get some small cap exposure in there and are truly buying the entire haystack.
So no one really knows whether the s p 500 or total stock market will have better returns in the next 30 years. The vanguard total stock market index fund vtsax tracks the crsp us total stock market index which includes approximately 3 500 stocks. However very long run returns of the s p 500 and total stock market 1928 2010 have shown the s p 500 to have slightly higher returns than the total stock market 10 4 vs. 10 2 as noted by jack bogle in this article.
What i can t tell you is whether or not they have had identical expense ratios for that entire ten year period. We spoke briefly about the issue of the total stock market index fund vs. Both the vanguard total stock market index and the vanguard 500 index mutual funds are also. Over the last ten years and according to m morningstar the vanguard admiral vfiax s p 500 index has returned 13 34 vs.
Let s first examine the differences between these two approaches. The portfolio of vanguard 500 index vfinx which follows the s p 500 has an average market cap of 54 6 billion. As far as the timeframe goes i d check your favorite finance site and plot the two together. And vtsax contains every publicly traded company in the u s but these two indices have nearly identical annual returns.
Vtsax post by thriftyphd wed feb 21 2018 2 26 pm in addition to putting small mid cap in an ira to balance out consider an international index. By contrast the vanguard total stock market vtsmx fund which follows the msci. I ll be using the vanguard funds noted above for my comparison although many fund companies offer. To answer this question i compared historical returns for both the nasdaq 100 and the s p 500 since 1972.
S p 500 will miss out on whatever stocks it doesn t hold from vtsax good or bad. 401k s p 500 index vs.