The fact that there is no expense taken out of the S&P 500 Index explains why that index will always outperform any index fund or ETF that charges investors an expense ratio. You'll get all this info in one place. Before we start: if you're looking for VFIAX stock price, you can While this fund is not tracked by the Zacks Mutual Fund Rank, we were able to examine other factors like performance, volatility, and cost. Vanguards VTSAX and VFIAX fit all three requirements of being diversified, low-cost, and tax efficient. Vanguard 500 Index Fund (VFIAX) - U.S. News & World Report VFIAX minimum initial Bottom Line: VOO Isn't Ideal But It's the Safest Way to Invest in Vanguard's S&P 500 Index Fund for Long-Term Investors. While there are many good options, these five Vanguard funds are a great place to start. Dow Jones Industrial Average, S&P 500, Nasdaq, and Morningstar Index (Market Barometer) quotes are real-time. How To Choose Vanguard Index Funds - Forbes Advisor VFIAX Purchase Info | Investment Information for Vanguard 500 Index The fund invests in stocks of companies operating across diversified sectors. They might represent some of the best assets to buy for your portfolio. It invests in stocks of companies operating across diversified sectors. The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost. As you can see in the chart below, over a 5-year period, VOO outperformed VFIAX by a total of .30%. Every public library is full of books that make option trading sound like a great way to turn a little bit of money into a lot, so even those who avoid the likes of /wallstreetbets may find themselves seduced into buying options on VOO rather than shares. For further information, check out This is apparently legal, if somewhat dodgy, according to analysis by Bloomberg. Lately I have been investigating how the indexes that underlie ETFs are constructed and finding out in the process that the way these indexes are set up guarantees that many of the ETFs people buy are not really doing what their titles suggest they do. You'll need a minimum investment of $3,000 to get started. Though, of course, you will need to set the amount you invest each month low enough that you don't end up running out of money you might need to live on. quickly find it out by visiting Finny and Volatility Measurements. VFIAX and VIGAX have the same expense Subscriber Agreement & Terms of Use | Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. Shareholders in Vanguard funds also do not receive any special dividends or any of the other perks that typically go with ownership. Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. So that pretty much covers how the VFIAX and VOO differ. Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $1. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. If the lower stock price allows you to buy VTI sooner, earn money, and then invest in VTSAX earlier, you might make more money overall than if you waited to invest in VOO. Type a symbol or company name. Keep reading to learn their similarities and differences to find out which index fund performs better. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. Each of the company logos represented herein are trademarks of Microsoft Corporation; Dow Jones & Company; Nasdaq, Inc.; Forbes Media, LLC; Investor's Business Daily, Inc.; and Morningstar, Inc. 0 bond holdings More recently, Vanguard outsourced its IT operations to India leaving 1,300 long-standing employees wondering how long they would still have jobs, and ushering in a new phase during which it was not unusual to see a different interface every time you logged in to view your account -- often one in which features that used to work have stopped working. And believe me, even if you think you won't need that customer support, given how simple your investing needs might be, when something breaks, as is becoming the case more frequently with Vanguard's mediocre, outsourced IT support, you are going to wish you had moved your assets to a brokerage that still believes in supporting customers, even those who are DIY investors. Because alpha represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which is the S&P 500 in this case, one should pay attention to this metric as well. The tragic flaw in Bogle's creative structuring of Vanguard seems to have been that he assumed that those who followed him in leading Vanguard would share his devotion to the needs of Vanguard's investors. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. 2023, Nasdaq, Inc. All Rights Reserved.