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vtsax expense ratio

Yah, the difference in cost is practically 0, but the question of 'why' has been bothering the hell out of me for some reason. this is somewhat masked because vanguard forces a surcharge upon the buys/sells that originate at another broker. Sorry, I farted and had to go to another room. There are usually minimums for mutual funds and as the minimum investment increases, you tend to see lower expense rations for the higher minimum funds. If you're already a Vanguard client: Call 800-888-3751. typically administration costs are going to be higher for a mutual fund. Anyone know how to compare the same ETF and mutual funds, i.e. There's an obvious spread between Mkt price and NAV. To me the biggest advantage ETFs have is that you can transfer them anywhere. You can't do partial ETF shares at many brokers either. It’s my primary holding. When you buy an ETF Vangaurd has to do nothing, it doesn't even know you own the ETF. I know that they both have rock-bottom low expense ratios, and that it is just one basis point, but I would have expected VTSAX to have a lower expense ratio due to its higher minimum investment ($3,000 for VTSAX vs. $149.05 for one share of VTI). The fund’s expense ratio is 0.15 percent, which is classified as low by Morningstar. Or, is it all a wash since you can buy partial shares of VTSAX and have more money working for you? Monday through Friday 8 a.m. to 8 p.m., Eastern time Annual Report Expense Ratio (net) 0.04% 0.91%. Cookies help us deliver our Services. So the ETF may be a different share class that is tied to the higher minimum Mutual fund. Do these ETFs sell at a premium/discount to their NAV like most ETFs? there is less human intervention (back office) for etfs. Vous pouvez modifier vos choix à tout moment dans vos paramètres de vie privée. When you buy an ETF from an exchange your brokerage keeps track of all that stuff, when you buy a MF from Vangaurd they need to do all the records keeping, This is the perfect answer. I don't know if these ETFs will reflect a market price or NAV price. True - mutual funds can't have a spread technically, One is an ETF and one is a mutual fund, you could read up on the differences, but this is one dollar per 10,000. Expense Ratio: 0.04%. It only makes sense to hold MF if your ordinary gain tax % is under cap gain tax %. I know that they both have rock-bottom low expense ratios, and that it is just one basis point, but I would have expected VTSAX to have a lower expense ratio due to its higher minimum investment ($3,000 for VTSAX vs. $149.05 for one share of VTI). Nos partenaires et nous-mêmes stockerons et/ou utiliserons des informations concernant votre appareil, par l’intermédiaire de cookies et de technologies similaires, afin d’afficher des annonces et des contenus personnalisés, de mesurer les audiences et les contenus, d’obtenir des informations sur les audiences et à des fins de développement de produit. If someone has a bonus transfer, you can easily get it. while I do not know for certain I will take a stab-. Don’t lose sleep over it. Does it have to do with the $0.02 premium built into VTI? If you want better support for something, I've actually prefer Fidelity even though I trust Vanguard funds the most. Whether it is a mutual fund or ETF, you pay capital gains tax on gains realized at sale. By using our Services or clicking I agree, you agree to our use of cookies. New comments cannot be posted and votes cannot be cast, Press J to jump to the feed. Découvrez comment nous utilisons vos informations dans notre Politique relative à la vie privée et notre Politique relative aux cookies. Pour autoriser Verizon Media et nos partenaires à traiter vos données personnelles, sélectionnez 'J'accepte' ou 'Gérer les paramètres' pour obtenir plus d’informations et pour gérer vos choix. Prospectus Net Expense Ratio 0.04% N/A. If these ETFs never trade at anything other than their NAV price then Vanguard couldn't sell them with expense ratios. It has no extra work or anything it needs to do, like I said it doesn't even know you bought it. VTSAX and VTI. The difference is negligible and can be attributed to rounding plus the minor expense ratio difference (0.01% = $1 on $10,000 by the way). It's negligible at this low rate, even for large portfolios. Some people stress out or don't understand the ETF purchasing process. Basically overhead. The company has a patent on its ETF structure allowing it to treat its ETFs as a different share class to its current mutual fund offerings. Both VTSAX and VTI have grown by about 370% over the last decade. The minimum initial investment is $3,000. If you have 100k for the Bank of America platinum honors credit card perks, you can also transfer your etf shares to Merrill if you prefer. I wonder how Vanguard is going to capitalize on this? Or they will try to market time the ETF purchases. I am wondering why (or how) Vanguard is able to offer a lower expense ratio for its total stock market index fund ETF than it does for its mutual fund equivalent. I understand the difference between mutual funds and ETFs, but why does the ETF have a lower expense ratio? Informations sur votre appareil et sur votre connexion Internet, y compris votre adresse IP, Navigation et recherche lors de l’utilisation des sites Web et applications Verizon Media. Am I making a mistake by not buying VTI instead? Does the price always reflect the NAV and not the market price? Here's the pricing information from Vanguard's site: Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), (No premium/discount, since the price reflects NAV). I wouldn't worry about the small cost difference. I have heard etf's have a larger bid ask spread than mf's. I think you are incorrect. Expense VTSAX Category Average. That said, if you like investing automatically or frequently with small amounts, it's hard to beat a mutual fund. vanguard still must use brokers like fidelity and schwab to facilitate flows. Vanguard VTSAX has an expense ratio of 0.04% per year. I believe they differentiate the share class for their mutual funds by investor share class and admiral share class. I used the information you provided above. The other big difference, even though I don't personally care about this one, is psychological. Prospectus Gross Expense Ratio … I’ve been buying VTSAX forever. ETFs structurally are slightly lower cost to administer than mutual funds, all other things being equal. Things like liquidity, market price vs NAV, tax benefits, etc, They are exactly the same in Vangaurds case. This means that for every $10,000 you invest into the fund, you will pay $4 each year in management expenses. etfs flows are facilitated by electronic exchanges. When you buy into the mf , you buy from Vangaurd, now it has to record all that information, keep track of your buys, your cost basis , all that stuff. VTSAX’s expense ratio is 0.04% and VTI’s expense ratio is 0.03%, which essentially means that investors will pay $1 more in management fees for every $10,000 that they invest. Had the same question, commenting to get notifications. With many providers there is also a difference in platform fee between mutual funds and ETFs (from what I've seen usually in favour of the ETFs). Press question mark to learn the rest of the keyboard shortcuts. Qualified dividends are taxed at the capital gains rate, and non-qualified dividends are taxed as income, in both cases. This means that for every $10,000 you invest into the fund, you will pay $4 each year in management expenses. I wonder how much payroll/operating costs that .01 difference supports. ETF are traded on an exchange. Most people don't do that with mutual funds since nav is set at the end of the day and you have no control over the daily timing. Yahoo fait partie de Verizon Media.

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