The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: anxiousclothing on April 03, 2018, 10:24:00 AM

Title: Vanguard Symbol Purchase
Post by: anxiousclothing 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?

Title: Re: Vanguard Symbol Purchase
Post by: Dollar Slice on April 03, 2018, 10:46:29 AM

Should be VTSMX.

https://personal.vanguard.com/us/funds/snapshot?FundIntExt=INT&FundId=0085&ps_disable_redirect=true&funds_disable_redirect=true

Title: Re: Vanguard Symbol Purchase
Post by: NextTime 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/

Title: Re: Vanguard Symbol Purchase
Post by: seattlecyclone on April 03, 2018, 11:35:34 AM

Quote from: dcozad999 on April 03, 2018, 11:03:57 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.

Title: Re: Vanguard Symbol Purchase
Post by: anxiousclothing on April 03, 2018, 09:01:10 PM

Thank you for the replies