Author Topic: Mutual Funds (VFIAX) or ETF (VOO)??  (Read 3744 times)

kcore2000

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Mutual Funds (VFIAX) or ETF (VOO)??
« on: April 15, 2015, 03:33:34 PM »
I'm have some extra cash I want to dump into an IRA for 2014 and 2015 before 11:59 tonight. I'm not really interested in buying and selling so I would like to "set it and forget it". Would you go Mutual Funds or ETF's? Which one of these two OR is there something else you would invest in? Thanks!

Vanguard 500 Index Fund Admiral Shares (VFIAX)
Vanguard S&P 500 Exchange Traded Fund ETF (VOO)

MDM

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Re: Mutual Funds (VFIAX) or ETF (VOO)??
« Reply #1 on: April 15, 2015, 03:44:26 PM »
Of those two, VFIAX.

My default "pick a fund for me" answer: VFIFX.

Indexer

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Re: Mutual Funds (VFIAX) or ETF (VOO)??
« Reply #2 on: April 15, 2015, 04:13:05 PM »
Personally I would do VTSAX instead, but VFIAX is a pretty close second.

Now something to keep in mind.  The minimum on either one is 10k.  So if this is a brand new IRA that might be a problem.  If the total amount is under 10k then the ETF is probably a better route.  So VOO for 500 or VTI for total.

forummm

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Re: Mutual Funds (VFIAX) or ETF (VOO)??
« Reply #3 on: April 15, 2015, 05:53:43 PM »
I always prefer funds, so VFIAX. But VOO would be OK too.

rmendpara

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Re: Mutual Funds (VFIAX) or ETF (VOO)??
« Reply #4 on: April 15, 2015, 08:10:16 PM »
Assuming your brokerage allows you to purchase partial shares of mutual funds, VFIAX will have a slight advantage in that regard to VOO (which is an ETF and trades like a stock).

I'd confirm with the brokerage if there are any differences in how mutual funds (either in general or specific to Vanguard) are handled compared to ETFs.

MDM

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