Author Topic: VTI vs VTSMX  (Read 7604 times)

MrsStubble

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VTI vs VTSMX
« on: September 18, 2013, 07:25:21 PM »
Hi, I'm getting started building my investment stash (baby steps) and I don't have alot of money.   I looked at VTSMX but my brokerage requires $3000 down/$1000 an extra investment to get into that.   I don't have a lot of money to get started investing (about $1000) which is too little to buy that fund with but, i saw they carry the ETF version which i could get into now.  I can put about $250-300 in every month meaning i'd be buying about 4x a year at $19.95 a trade for the mutual fund, or 4x a year at $6 a trade for the ETF (to keep the trading costs down).     I'm just not sure if this is a good idea or not. Thoughts?

grantmeaname

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Re: VTI vs VTSMX
« Reply #1 on: September 18, 2013, 07:33:41 PM »
Why don't you use Vanguard as your brokerage? Then buying VTI or VTSMX is free. There's a lower minimum for VTSMX if you set up a recurring purchase, and there's no minimum to speak of for VTI.

MrsStubble

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Re: VTI vs VTSMX
« Reply #2 on: September 18, 2013, 09:19:32 PM »
Ooh, thank you, i didn't realize you could buy from them directly!! Love it!  So now, hold out for the Mutual Fund or buy the ETF version? 

msilenus

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Re: VTI vs VTSMX
« Reply #3 on: September 18, 2013, 10:41:49 PM »
Investing in small amounts like this, commissions can be more important than fees.  At $20/trade, 4x a year, you'd be spending 2.2% of your principal on commissions.  It sounds like you're taking grantmeaname's advice so it won't matter here, but it's good to be in the habit of running the percentages.

matchewed

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Re: VTI vs VTSMX
« Reply #4 on: September 19, 2013, 07:31:29 AM »
Which one depends on what kind of investor you want to be. https://investor.vanguard.com/what-we-offer/etfs/compare-etfs-and-index-funds that has a breakdown of the differences.

kyleaaa

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Re: VTI vs VTSMX
« Reply #5 on: September 25, 2013, 12:00:17 PM »
You'd probably be far better off just going with one of the Target Retirement Funds. They are more diversified and the minimum just happens to be $1000 at Vanguard.

 

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