The ideology behind passive management is to track the market rather than attempt to beat the market. He sought a passive strategy that translates to a lower expense ratio, turnover, and management fees. They were created by John Bogle, the founder of the Vanguard group and a significant proponent of index investing, who thought of a cost-effective and independent solution to index investing. They are also weighted the same, with VTSAX having 27% in technology and the same for VTI.īoth VTSAX and VTI are broad-based funds diversified in several market sectors.īoth VTSAX and VTI are passively managed funds. Vanguard’s VTSAX and VTI have the same holdings. Regarding performance, VTSAX and VTI have had identical performance returns over the last 10 years. Likewise, the total return for VTSAX over the previous 10 years is 12.23%. The total return for VTI over the last 10 years is 12.23% per year. They both track the same index (CRSP U.S. VTSAX and VTI have had the same performance over the last 10 years. VTI is an exchange-traded fund (ETF) therefore, it trades intraday, while VTSAX only trades once daily at market close. VTSAX and VTI have low expense ratios however, VTI’s expense ratio is lower than VTSAX’s. VTI provides investors with the same market exposure as its admiral version, VTSAX but at a lower expense ratio of 0.03%. Vanguard Total Stock Market (VTI) is the ETF equivalent of the top-rated index fund, VTSAX. I have another post with a full explanation of the difference between an ETF and an Index Fund. VTSAX and VTI track the same underlying index, the CRSP U.S. The main difference between VTSAX and VTI is that VTSAX is an Index Fund while VTI is an Exchange-Traded Fund (ETF).
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