VTI vs. VTSAX: Which is better for a brokerage account vs. a retirement account?

  • This topic is empty.
Viewing 7 posts - 1 through 7 (of 7 total)
  • Author
  • #91944 Reply

      Can someone explain to me when you buy VTI versus the mutual fund equivalent? What’s better in a brokerage account versus a retirement account and why? Could I do better than buying VTI and QQQM in a traditional IRA? Thanks!

      #91945 Reply

        We do in both. After maxed for year in IRAs roughly by May, then rest the year we put in taxable brokerage.

        Doing VTSAX all accts in vanguard.

        #91946 Reply

          One upside to ETF over mutual funds is you can buy ETF at any taxable brokerage for no fee and are easily transferrable. Buying/Selling VTSAX is a $75 fee at Fidelity for example.

          I mean you could always switch which you are buying to get around liquidating and taking a tax hit but it is one thing to consider.

          Would you also like to explore: Any thoughts on VTI vs VOO?

          #91947 Reply

            There is about zero difference between the two. When choosing between vTI and VTSAx, choose VTI since its expense ratio is slightly lower than that of VTSAX.

            Their returns are identical.

            #91948 Reply

              I honestly prefer ETFs.

              They are much easier to transfer to other institutions (useful if you’re into collecting brokerage transfer bonuses) and typically have lower expense ratios than the mutual fund equivalents.

              Purchasing fractional shares is now supported on many platforms (including Vanguard), so I really don’t see an upside to the conventional mutual fund format (assuming a well managed ETF with enough volume to have low discount/premium drift from NAV—something that applies to most vanguard funds).

              #91949 Reply

                To me, there isn’t enough of a difference between them for it to be the reason you decide something. So really, to me, it’s more about your situation.

                If you’re at fidelity, then it would be a question of Vanguard’s ETF versus Fidelitys index fund.

                If you want to automate, then fidelity’s index fund would win.

                If you instead really want a vanguard fund, then vanguards etf would win.

                So, this is a case of, we don’t need to worry about the “small rocks”.

                In the end, do what works for you and move on. It’s not the thing that will allow you to retire or stop you from retiring.

                Don’t miss: What would be the best retirement account options as individuals or through the LLC?

                #91950 Reply

                  Whenever possible. You would only buy the mutual fund version of VTI at Vanguard itself.

                  Fidelity makes this very easy now, so we can dispense with the often- heard lame excuse of “its too hard to invest in ETFs because I can’t possibly remember to spend 30 seconds doing that on my phone every two weeks or month.”

                Viewing 7 posts - 1 through 7 (of 7 total)
                Reply To: VTI vs. VTSAX: Which is better for a brokerage account vs. a retirement account?
                Your information:

                Spread the love