VOO vs. VFIAX

So there are two index/etf funds out there with the symbols VOO and VFIAX. These funds cost the same and have the same returns too, so a lot of people wonder, why are there two of them? In this video I am going to go over the differences between these two funds and help you decide which one is best for you…Let’s Get into it

DISCLAIMER: THIS VIDEO IS FOR ENTERTAINMENT PURPOSES ONLY. YOU SHOULD ALWAYS CONSULT WITH A PROFESSIONAL FINANCIAL ADVISOR BEFORE MAKING ANY DECISIONS WITH YOUR MONEY

First up I will go over the similarities between the two. Both of these funds track the S&P 500 and both have the same expense ratio of 0.03%. They both hold the same collection of stocks and have the exact same annual returns each year. You can also reinvest dividends with both funds. Now for the differences: The biggest one is the minimum investment amount for vfiax. You have to have $3000 minimum to invest into it where the minimum for VOO is just the cost of one share which is around $275 right now. Next, this is something very minor, but the price of VFIAX does not change throughout the day, the price of VOO does, but to me that doesn’t really matter unless you are trying to day trade. Third, what I think is the most notable difference that can really affect you is that only VFIAX allows for automatic investing each month and VOO does not. So say you wanted to invest $100 each month into the S&P, you could do that automatically through VFIAX, but not through VOO. So that is a really nice benefit of investing in VFIAX if you like to automate your investing.

Sub count at time of upload: 127

[stevearodgers]

Great video! Not sure if it changed since this recording, but the current expense ratio for VFAIX is 0.04% compared to VOO which is 0.03%. Not much difference, but a difference none the less.

[tonywong]

You can also buy portions of a share on VFIAX whereas you can only purchase whole shares of VOO

[Michelle-blsz]

You have great, simple, and straight to the point videos!

[axl]

I like your background and how quick these videos are

[gilgameshblackjack]

Well done! I will also add that one is an ETF and the other is an Index Fund!

[TShirtAndReeboks]

I like that I can just put whatever amount into VFIAX once I have it, I don't have to buy a whole share of it like with VOO, but I like that with VOO you can buy at any time so if the price temporarily drops, I can get it for that price instead of whatever the official closing price for that day was.

[grealestate]

Very crisp and to the point. Thanks Sir. Very helpful.

[kona]

I like VFIAX mainly because I have auto investing set up. Can't do that with VOO.

[bart_seavey]

Schwab's S&P 500 index mutual fund SWPPX has an expense ratio of 0.02, $1 minimum investment, and can be bought automatically.

[terellkid]

It seems as though etf’s are superior in every way to mutual funds. I’ve been searching hard to find a call pros and cons list but the pro of etf’s seem to far out weight the pro and cons of mutual funds, sooo why do mutual funds even exist? Thinking about selling my vfiax to get the equivalent in VOO.

[sondersrn]

When you want to sell shares VFIAX you have to wait until the end of the day price per share with VOO you can sell throughout when the stock market is open.

[MG-lidr]

I own both VOO and VFIAX shares in a Vanguard brokerage account. Will I earn more money with compound interest if I combined the two (converting VFIAX to VOO)? Or does it earn the same amount of compound interest regardless because both VOO and VFIAX are in the same account? Does this matter in the long run for maximum profit? Thanks!

[imdoc]

I was under the impression that ETFs do not reinvest dividends that is why mutual funds are superior. The annual return for an index that tracked the s&p that did not reinvest dividens/earnings would be 8% compared to 11% if it did.

[Adrian-rcyj]

Is it better to invest into VFIAX alone or through a Roth IRA??

[GQ-ybkt]

VFIAX has an expense ratio of .04 not .03 like VOO.

[NowOnline]

I recently got a brokerage link within my fidelity 401k. I sold off my companies pre-picked mix stocks/bonds/international and put everything into VFIAX. I did this because I didn't have alot of funds to begin with and also my company doesn't do any matching and I don't know much about their choices. Also, I keep hearing good things about VFIAX. Do you think I made a safe choice or should I also start up slowly investing back into the pre selected 401k rather than just the VFIAX in my 401k brokerage link?

[matthew]

Great great great video. So simple. No bullshit. Thanks.

[vlvl]

Can you invest $100 per mth after you buy one share of VOO to start this etf?

[TrickyBoa]

I have money invested in 500 admiral in my 403b from my employer but also want to invest with my brokerage account on vanguard. Should I go with voo to switch it up?

[primaryendo]

Great video. Clear and straight to the point. I'm about to invest in index funds, probably VOO. Is it a good idea to put 100% of my money in VOO or should i balance the portfolio with some bond funds also?