Author Topic: Dumb Question  (Read 843 times)

ACyclist

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Dumb Question
« on: November 16, 2017, 05:43:03 PM »
What is the difference with VTSMX, and the admiral shares, VTSAX?

One requires a higher investment, but what else is different with these? 

Sorry, I am a lame investor asking lame questions.

kasperle

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Re: Dumb Question
« Reply #1 on: November 16, 2017, 05:48:06 PM »
That's a great question. The expense ratio for VTSAX is cheaper than VTSMX, which means you pay less over time.

VTSAX Expense Ratio: 0.04%
VTSMX Expense Ratio: 0.15%

The expense ratio is how much of the fund is taken out each year by Vanguard to pay for the cost of maintaining the fund. Typically, you'll want to shoot for funds with lower expense ratios to maximize your earnings.

I started investing in VTSMX until I had about $12k, then I switched over to VTSAX.