Total Stock Market vs. S&P 500 | VTSAX vs. VFIAX

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What's the difference between VTSAX and VFIAX? In this video, I compare and contrast the two most popular stock market indexes: The Total Stock Market Index (VTSAX) and the S&P 500 Index (VFIAX).
Timecodes:
0:00 - Intro
1:27 - S&P 500
2:23 - Total Stock Market
3:01 - Comparison | 4 Areas
3:20 - 1) Cost
3:49 - 2) Minimum Investment
4:10 - 3) Composition
6:16 - 4) Returns
8:52 - When is S&P 500 Better For You?
10:33 - What I Prefer
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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

Опубликовано:

6 июл 2024

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Комментарии : 93

@ericfleet9602 Год назад

I enjoy Tae's content. Very simple and correct information. I am in VFIAX because VFINX was the first broad index fund when I started investing decades ago. The reality is I prefer VTSAX now, but the difference is negligible. If you are invested in either you are doing just fine.

@kinnish5267 Год назад

As an investor over 30 years, I can tell you know your stuff and it is 100% true

@manny6020 Год назад

You did great job at structuring and presenting this information. Thank you 🤝

@deion312 Год назад

Great video, I love the simplicity and clarity of your speech, you just got a sub

@scottt.4596 Год назад

Great comparison! You answered all of my questions. Cheers 🍻

@deec.3904 4 месяца назад

Thank you, I appreciate your thorough explanation!

@korndawggy1801 5 месяцев назад

I like how you basically word this so that us that never knew how to pay attention to this can understand it better.

@stevengilliland74 Год назад

Tae you’re my new favorite channel! I really enjoy your content and presentation style. Keep up the good work!

@amouzakis Год назад

This was the video I was looking for, thanks! I started with VFIAX, and seeing the ways they're similar and different, I think it's still best for me needs at this phase in life. I'm glad to know for sure!

@threestacks0 Год назад

Thank you for the breakdown! I have my money in the S&P 500 and was a little concerned when I found your channel but your breakdown gave clarity and peace that as long as I am in one of these funds, then I am setting myself up for success long term. I just found your channel but I am grateful that you focus on slow growth and not these get rich quick schemes. Also great editing and putting former videos to watch at different points. I am a young guy who's family does not have any investing experience and am trying to create generational wealth and education so these videos are extremely important.

@jasonhenry7992 Год назад

Excellent explanation comparing the 2 funds

@mastttt91 Год назад

Tae consider making a podcast! You'd blow the other podcasters out of the water.

@hikingwithhollywood Год назад

Great job. Exactly what I wanted to see and information I wanted

@maddythomas7125 9 месяцев назад

Your videos have been very helpful for me in making decisions as a new investor! Thank you also for the reminder that both are good options and it’s better to chose one then to spend all your time investing! Your analogy of the body building was a great way to think of it!

@echo021 Год назад

Excellent comparison! Thank you!

@oasis3808 Год назад

Thank you for your video, it's educational and encouraging. I have VTSAX in my Roth IRA .

@SEANPATTON-uu9qk Год назад

That was an AWESOME analogy!!! I understand to most degree, however, your break down between the Two is Wonderfully insightful! THANK YOU Mr. KIM! Gamsahamnida!

@danielwiedmann2637 Год назад

Thank you for the breakdown! You outlined everything very well. I personally hold both in my portfolio - VTSAX in my Roth IRA and VFIAX in my long term investment account. Like you said, you cant really go wrong.

@Anickle818 Год назад

Lol - the body building vegetable example spoke to me. Thanks! Going to just bite the bullet and get one now and the other in a few months 😊

@nomadicyoutube Год назад

EXCELLENT straightforward breakdown of the composition difference between the two funds and the relatively small difference in returns (over the long haul). For simplicity, I started building a position in VTSAX (outside of my employer-sponsored 401K) many years ago and I continue to build upon my VTSAX position via my Vanguard brokerage account in addition to a relatively small VTSAX position in my ROTH IRA.

@robertlane7270 5 месяцев назад

Thank you so much for sharing your knowledge ❤

@BoulderJR 5 месяцев назад

Excellent summary!!

@chittu1980 3 месяца назад

Great video Tae. 👍

@lulusp1023 Год назад

I started investing over 20 years ago...I just wish I had done better research and use vanguard instead of my employer suggestions....I will make sure my children invest with knowledge... Thanks for all your videos!

@timothyumunna4605 11 месяцев назад

Good stuff Tae 👍🏾👍🏾👍🏾

@luckyjay4209 Год назад

This just what I needed - Thank you!

@TaeKimFinancialTortoise Год назад

Glad it helped!

@myrix57sm 8 месяцев назад

Thanks for the through breakdown

@sookis1549 27 дней назад

great explanation, thanks tae

@gabesgrind7894 2 года назад

Great comparison. This needs more views

@TaeKimFinancialTortoise Год назад

Thanks!

@bnice29 Год назад

VTSAX & VTI in separate accounts - good video You hit much of the pertinent information, such as cap breakdown in VTSAX. However, we need to see the percent loss both funds from 2007 until April 2009.

@dannyfresh6697 10 месяцев назад

I have both in my Roth IRA. Play both sides so you never lose... except when the stock market crashes lol

@alkeshmathur4546 8 месяцев назад

Very well explained, thanks for sharing your knowledge (Y)

@Kim-cg7rw Год назад

Thanks!

@charlsalash Год назад

I was ready to ditch my VTSAX for VFIAX, now I won't. Thank you.

@007clownfish Год назад

I like them both so I have both and vb and vo

@nocturneowl2660 Год назад

Great video

@kenanishmael3328 6 месяцев назад

Nice video, I would prefer S&P 500, VFIAX.

@renitasanders7032 2 года назад

I have both..for better balance personal preference.

@JA-iu8bo 2 года назад

if you don't mind me asking im a teen and trying to familiarize myself with stocks, so do you invest in both equally or one more than the other?

@renitasanders7032 2 года назад

@@JA-iu8bo I invest about 60% in VTSAX and 35% in VFIAX.

@archimedes_espinosa Год назад

@@renitasanders7032 where does the other 5% go Taco Bell IX lmao

@afridgetoofar1818 7 месяцев назад

There is literally no point in owning both. It’s basically redundant. Just pick one and go with it.

@automat8 Год назад

Thank you! Tae. I wonder if its worth converting from a Traditional to a Roth? I have a my Vanguard set to up a Traditional. I do have a Fidelity Roth IRA. My assets are split 50 50 in Vanguard and Fidelity? A sandwich generation guy.

@Cruiser-nr3pl 2 года назад

How has vtsax been these last few months? I wonder if since it is spread out with so many companies that it holds its own or not.

@tammynguyen4936 10 месяцев назад

Hi Tae, please do an update of these 2 index funds. I'm in the process of may be buying VTSAX. Thanks

@randygandy9222 11 месяцев назад

Both

@toufonglee5073 9 месяцев назад

Is it a good idea to get BOTH? If so, what percentage should I invest in each???

@paulshinn5394 2 года назад

VFIAX

@RatherBDiving1 2 года назад

I’ve been putting a significant part of my portfolio into VSMPX. I believe it’s nearly identical to VTSAX, but with a lower expense ratio of 0.02.

@ProMethod2 2 года назад

you have $100,000,000 ...?

@RatherBDiving1 2 года назад

@@ProMethod2 I have access to it through my workplace 403b ROTH, and therefore, don’t have to meet a minimum to contribute.

@afridgetoofar1818 7 месяцев назад

@@ProMethod2it’s an institutional fund for whatever corporation he works for

@jasonrico8558 5 месяцев назад

How can I compare the dividend growth between the 2? And good new the expensive Ratio has gone down to .03% now

@NotShowingOff 2 месяца назад

The fact that 500 companies make 80-85 percent of the total stock market shows there is major stratification in corporate power

@Jason-gp4hg 2 года назад

Happy new year sr. Thank you for the great job. I got a question sr. Du you recommend bond for a child portfolio 💼 my son have 11 years old. Thank you

@TaeKimFinancialTortoise 2 года назад

Hi Jason! It really depends on your child's portfolio objective. If it's for college, then potentially some since that's within next 5-10 years. If it's for something further out, then maybe not so.

@SahitiSeemakurti 11 месяцев назад

vanguard index funds vs. fidelity funds?

@Thefitnancialtrainer 2 месяца назад

In the past 30 years how many times did these funds have a negative return? How long after did it take to earn what was lost? Do you still pay fees on negative years?

@HeavyMetalParkingLotArchive Год назад

BOTH!

@wjmilnerii 11 месяцев назад

I believe it was mentioned in the comments…but I have access to VSMPX through my employer (but not VTSAX). What are the major differences between these two index funds? Would you expect similar performance between the two? Thanks--great videos.

@TaeKimFinancialTortoise 11 месяцев назад

VSMPX is institutional share (minimum $100M) so has lower expense ratio of 0.02% vs. VTSAX 0.04%. But no difference otherwise. Pretty much identical funds.

@peterl2767 2 года назад

👍👍👍

@scarling9367 2 месяца назад

I dont have a magic answer, but my father started in his 40s and now closing in on 65 he's got about $175k. With a paid off house and social security, thatll do quite fine.

@user-fr3vs4ub9s 3 месяца назад

can you do vffsx vs voo?

@hucklebuck7149 2 года назад

I don't have Total Market option offered in my 401-k, which is administered by Fidelity. I researched and created a total market portfolio using the S&P 500 option available (FXAIX). In essence I combined FXAIX (83%) (Large Cap) with FSMDX (8%)(Mid-Cap) and FSSNX (9%)(Small Cap). What do you think about this approach? Thanks.

@TaeKimFinancialTortoise 2 года назад

That sounds great! You’ve pretty much recreated what a total market would represent within your 401(k)!

@RatherBDiving1 2 года назад

Often with Fidelity you can open a Brokeragelink account. Then you can move money from your regular 401K account into the Brokeragelink and have access to pretty much everything Fidelity offers and even ETFs such as VTI the ETF version of VTSAX.

@johngill2853 2 года назад

@@RatherBDiving1 yes but then brokerage links often have fees involved in them. If you don't have to pay them fees it's probably better off not to pay them.

@jaymoar3561 9 месяцев назад

I just can’t do mid or low or even international and I just stick with the s and p 500, none of them comes close to bringing in the same amount as a and p 500. S and p 500 all the way.

@tacocruiser4238 10 месяцев назад

The great part about S&P 500 index funds is they filter for the highest quality. If a company is failing or not performing well, it's only a matter of time until they get removed from the index and replaced by something better. In contrast, small cap indexes tend to be a haven for zombie companies and meme stocks. Bad companies can actually fail INTO small-cap indexes because they got demoted from larger-cap indexes. It's almost like small-cap indexes reward mediocrity since they add bad companies and remove the best companies (who get promoted to larger-cap indexes).

@chriswashington2208 Месяц назад

I have $20,000 to invest. Which one will give me a better return per month and how much?

@fakihn7952 2 года назад

Please make a video about REITs

@TaeKimFinancialTortoise 2 года назад

Thanks for the feedback! I’ll definitely add that to my list for future content!

@jerrycorp3632 Год назад

So a total market index vs a large cap index fund? Why not VTSAX vs FSKAX both are total market. The difference is VTSAX requires a min of 3k, FSKAX has a slightly lower PE, and maybe a minor % difference allocated for large cap. other than this its the TOTAL market…

@killthefoozle 5 месяцев назад

Why not both?

@afridgetoofar1818 3 месяца назад

VTSAX all the way!

@Rip_lol883 3 месяца назад

Hi go du

@chrismiller1317 4 месяца назад

Is there an S&P 1000 to get more mid cap companies?

@afridgetoofar1818 3 месяца назад

Charles Schwab has a similar fund called the Schwab 1000

@fancher1959 2 года назад

Great video! The ‘bouncing hands’ as he speaks is slightly distracting however

@TaeKimFinancialTortoise 2 года назад

Haha. Thanks for the feedback! I’ll work on that for my next video. Thanks!

@jec1ny Год назад

Meh. If you're really losing sleep over this, just flip a coin. Heads or tails, you will be a winner.

@jbcr3 10 месяцев назад

Fidelity wanted to charge me $75 to buy

@GC-kk4et 6 месяцев назад

You need to buy the etf version of the fund and it will be free. Like VOO. It’s exactly the same fund but with no minimum and lower fees. Easier to trade too. Fidelity also has their own version of these two funds which are FXAIX for S&P500 and FSKAX for total market. It’s tracking the same index so it’s investing in the same companies and the performance is identical.

@jasonrico8558 5 месяцев назад

Interesting fidelity actually has .02 expensive ratio compared to .03 vanguard. Way to come out swinging lol

@andrewa7614 2 года назад

Anyone have thoughts on VGSTX for a Roth?

@Jason-gp4hg 2 года назад

VTSAX is all you need for ROTH IRA. set it and forget it, add money every week is a money machine

@johngill2853 2 года назад

That would depend on what you want. Do you want 18% of your fund in international and do you want long-term Bonds in your portfolio? Vanguard Star fund is what it is and the question is is it right for what you want? By you asking it tells me you don't know and you need to choose your asset allocation and then choose a fund. You're doing it backwards you're choosing a fund and then asking if it's okay

@doug2731 Год назад

Great content but I can't help but notice your hands dancing around the entire time. Public speaker body language is important but it's a bit distracting in this case.

@johngill2853 2 года назад

Great video

@TaeKimFinancialTortoise 2 года назад

Thanks!