100k of VTSAX today???

[Anonymous]

We don't know details of your situation but if you simply want to invest for the long term and don't need this money in the near future, you are doing the right thing absolutely.

[Anonymous]

OP here. What is this VTI that people are mentioning?

[Anonymous]

Anonymous wrote:OP here. What is this VTI that people are mentioning?

OK. Fraud alert. This is a Vanguard salesperson. You could look it up and find an answer in 0.1 seconds.

[Anonymous]

OP again. Ok I looked it up but I don’t understand how it’s different from VTSAX. As I said I’m a novice.

How would my risk be different in VRI vs VTSAX?

[Anonymous]

Anonymous wrote:OP again. Ok I looked it up but I don’t understand how it’s different from VTSAX. As I said I’m a novice.

How would my risk be different in VRI vs VTSAX?

They are functionally the same thing. They are both Vanguard Total Stock Market. VTSAX is inside a mutual fund, VTI is an ETF, so it's tradeable more quickly as a stock.

[Anonymous]

OP here. Thanks. I think I’ll stick with the VTSAX since I don’t plan to be doing any trading.

[Anonymous]

Do they have the same fee structure?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP here. What is this VTI that people are mentioning?

OK. Fraud alert. This is a Vanguard salesperson. You could look it up and find an answer in 0.1 seconds.

I think I saw Communists under your bed! You better go check.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would do VTI if this is a normal brokerage account.

Can you explain why? Thanks

VTI is the ETF version, and you can buy it as an ETF at a time, and set a price you want to purchase it for. With VTSAX, you get the price at the end of the day, and I believe the fees are higher. You should buy over time, like every two weeks until it is all invested. Right now the market is pretty high, so I would stretch it out.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Why VTSAX vs VTI?

I suggest VTSAX for beginners because its nature as a mutual fund prevents you from “playing with it” i.e. you can’t intra-day trade it like a normal stock or ETF (like VTI).

OP is nowhere close to being a trader. Stay away from mutual funds. Get a good S and P 500 etf and leave it alone. OP, you have Roth maxxed, right?

”stay away from mutual funds” is a very dumb comment

[Anonymous]

They are nearly identical. They are packaged differently. One is a mutual fund which is purchased once the price is set at the end of the day. The other is an ETF which can be bought anytime the stock market is open. Sometimes there are more fees for buying one over the other. My simple answer for you in this setting is not to worry too much about it. They are both good. An ETF is perhaps a better choice in terms of fees. In the end they will do the same thing at nearly the same cost.

[Anonymous]

Anonymous wrote:They are nearly identical. They are packaged differently. One is a mutual fund which is purchased once the price is set at the end of the day. The other is an ETF which can be bought anytime the stock market is open. Sometimes there are more fees for buying one over the other. My simple answer for you in this setting is not to worry too much about it. They are both good. An ETF is perhaps a better choice in terms of fees. In the end they will do the same thing at nearly the same cost.

This is all pretty accurate but the difference in fees is very small— it might be $20 a year on a $100k investment (and you don’t have to pay bid/ask spread as you do for VTI).

Anyway I agree it’s not worth worrying about and the nice thing is if you own VTSAX at Vanguard you can always convert it to VTI later if you want

[Anonymous]

VTI is more tax efficient.

[Anonymous]

VTI till I die

[Anonymous]

Anonymous wrote:VTI is more tax efficient.

How? No dividends?