When do you expect this passive income to kick in? How much do you want this passive income to be?
So don't do the S&P 500 Index.
Yes it is an admiral version of VTSMX, see my original reply to you.
If you can't guarantee that is will always perform better then why are you assuming that it is a smarter choice? What you can control is fees. All else being equal the fund with the lower fees will be better.
Also do you know what USMIX consists of? Do yo know why it may or may not be a superior choice?
Please don't take offense to this but you seem to need some learning on investing. I'm a fairly gung-ho fan of index funds but you need to know why you're investing in them. And you need to have a defined plan that these funds support. Maybe it's because of the vagueness of your posts but I get a sense that you don't have an investment plan or policy. Look up an investment policy statement. It truly outlines the why you are investing so that you start considering what supports that.
Believe me, no offense taken. You are correct, I do need some learning in terms of investments as I am pretty new to the whole scene.
In terms of passive income, I am looking for long term growth. I'm not looking to invest some money and then in two years attempt to make a profit. I'm looking for something that will help me increase my net worth, enabling me long term growth as in ten to twenty years, with automatic investments going into the account in the mean time.
You are correct in term of the two funds I brought up. You cannot foresee future performance, and going with something with a lower expense ratio is going to be the best bet. Especially is the fund fails to earn value or provides a negative return within a year. So, good call on that, as it was something I was not thinking of too in depth.
As far as I know, the USMIX contains large cap style funds which consist primarily of large corporations in the DOW, such as GM, Johnson & Johnson, etc. I am not sure why it would be a better choice than VTSMX. All I can tell from doing research on both is the holdings that they have are different, in terms of the type of sector they hold, as well as their expense ratio.
I do not have an investment plan, something that it seems that I need. I will go ahead and do further research on something like this. To put it simply, I'm looking for growth financially with money that is not currently needed for living expenses or expenses that should arise in the near future. We have an emergency fund and are living below our means for sure, so the extra money each month I am looking to grow more than a standard savings account or CD would provide.