Скачать или смотреть SWTSX vs VTSAX - Which Fund Exhibits Better Performance? (Which Fund To Invest In?)

SWTSX vs VTSAX - Which Fund Exhibits Better Performance? (Which Fund To Invest In?). In this comparison video I will talk about SWTSX vs VTSAX.

So, the main difference between them is the holdings.
The Vanguard Total Stock Market Index Fund (VTSAX) mirrors the CRSP U.S. Total Market Index. It has over 3,600 stocks, which expose you to large, mid, and small-cap shares. The VTSAX's portfolio promises diversity and higher potential returns.
In contrast, the Schwab Total Stock Market Index Fund (SWTSX) mirrors the Dow Jones U.S. Total Stock Market Index. It currently has over 3,400 stocks, which expose you to small, mid, and large-cap stocks. Although diverse, it’s clear that Vanguard’s VTSAX takes this one.
Therefore, VTSAX promises a more diverse portfolio that better mimics the market and weathers economic downturns.

Minimum investment.
SWTSX doesn't have a minimum investment. This makes it easy for beginners and budget-conscious investors to join this fund. They'll only pay the price of a single share instead of a fixed minimum deposit.
Conversely, VTSAX charges a $3,000 minimum investment. This can intimidate new investors interested in the fund. However, to their credit, Vanguard advises those who cannot meet this minimum to start with the VTI, their ETF. Once they reach the $3000 minimum, investors can switch to VTSAX. While this is good, it may deter potential investors.
Therefore, SWTSX doesn’t have a minimum investment, making it accessible to more people.

Expense ratios.
VTSAX charges a 0.04% expense ratio, while SWTSX charges 0.03%. The expense ratio covers the fund's operating cost. Fund managers deduct this fee from your dividends or capital gains distributions. Higher expense ratios may translate to lower returns, especially when you factor in taxation.
Therefore, SWTSX’s lower expense ratio makes it ideal for most investors.

But do they have any similarities?
Yes. Both funds have exhibited similar performance in the last decade with negligible differences that result in similar returns. Furthermore, both funds experienced similar price fluctuations and risks.

To sum up, which is better- SWTSX or VTSAX?
I like Vanguard's VTSAX. Its diverse portfolio and decent returns make it a no-brainer for this risk-averse investor. However, Schwab's SWTSX offers a lower expense ratio and doesn't impose a minimum investment amount, making it easy to get into. In my opinion, both investments are worth considering, especially in light of their performance.

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