Author Topic: Vanguard Symbol Purchase  (Read 693 times)

anxiousclothing

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Vanguard Symbol Purchase
« on: April 03, 2018, 10:24:00 AM »
I just opened a Roth IRA for my wife at Vanguard. What is the fund that will automatically role over to VTSAX when it hits the $10,000 mark?

Dollar Slice

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dcozad999

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Re: Vanguard Symbol Purchase
« Reply #2 on: April 03, 2018, 11:03:57 AM »
Isn't it better to go with VTI until you have $10k to move into VTSAX?


I guess there's already a thread about it. Doesn't seem to be a big difference whichever way you go:

https://forum.mrmoneymustache.com/investor-alley/vti-vtsmx-vtsax/
« Last Edit: April 03, 2018, 11:12:53 AM by dcozad999 »

seattlecyclone

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Re: Vanguard Symbol Purchase
« Reply #3 on: April 03, 2018, 11:35:34 AM »
Isn't it better to go with VTI until you have $10k to move into VTSAX?

The difference in expense ratios between the two funds is 0.11%. Investing $5,500 in VTSMX for a year will cost you about $6 more in fund expenses than investing in VTI. On the other hand, investing in VTI you'll lose a few cents to the bid/ask spread on both the buy and sell side, plus you'll have a few bucks of cash sitting on the sidelines not invested because you'll need to buy whole shares of VTI.

Sounds like basically a wash to me.

anxiousclothing

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Re: Vanguard Symbol Purchase
« Reply #4 on: April 03, 2018, 09:01:10 PM »
Thank you for the replies