VTSAX vs VFIAX: Which One Would You Choose?

If you are thinking of investing simply, look no further; just invest in an index fund.

The Index Fund

The index fund is considered “Bogle’s Folly.” The legendary Jack Bogle, the creator of Vanguard, created the first index fund called VFINX.

VTSAX Overview:

The Vanguard Total Stock Market Index Fund (VTSAX) is a total stock market index fund that tracks the entire market of the U.S. stock exchange. It follows the CRSP US Total Stock Market index.

The index fund does a great job of having exposure to the entire market. Here are the top 5 sectors of the fund:

– Technology (27.7%) – Consumer Discretionary (16%) – Industrials (13.30%) – Healthcare (13.10%) – Financials (11.5%)

The Top 10 companies that occupy 23.90% of VTSAX:

1. Apple 2. Microsoft 3. Alphabet 4. Amazon 5. Facebook 6. Tesla 7. Nvidia 8. JP Morgan Chase 9. Berkshire Hathaway 10. Johnson & Johnson

VFIAX Overview

VFIAX is the Vanguard 500 Index Fund Admiral Shares. This is the admiral shares part of VFINX, the first index fund.

The index fund does a great job of having exposure to the entire market. Here are the top 6 sectors of the fund:

– Technology (27.6%) – Consumer Discretionary (12.40%) – Industrials (13.30%) – Healthcare (13.30%) – Financials (11.4%) – Communication (11.3%)

The Top 10 companies that occupy 29.20% of VFIAX:

1. Apple 2. Microsoft 3. Alphabet 4. Amazon 5. Facebook 6. Tesla 7. Nvidia 8. Berkshire Hathaway 9. JP Morgan Chase 10. Johnson & Johnson

Swipe up now to read the full post!