VTI vs ITOT

Have a question about your personal investments? No matter how simple or complex, you can ask it here.

VTI vs ITOT

Postby akpk » Tue May 14, 2013 6:16 pm

I would like to use VTI (Vanguard Total Market Index) for my taxable account. I intend to contribute monthly. But i use Fidelity and like them. Fidelity offers iShares ITOT which doesn't have any trading cost. What would gurus recommend - using ITOT instead of VTI. Or shall i open a brokerage account with Vanguard to avoid etf monthly buying cost (which is $7.95 on fidelity. I would like to add that i used vanguard brokerage service few years back and didn't like it. They don't have any match in mutual funds :-)
akpk
 
Posts: 8
Joined: 13 May 2013

Re: VTI vs ITOT

Postby red5 » Tue May 14, 2013 6:31 pm

Just my 2 cents,

It appears they track different indexes, both of which are meant to be all encompassing of the US market. ITOT tracks the S&P Total US Stock Market.

Anyways, according to a M* growth chart, VTI gained 7.4% per year for the last 9 years while ITOT gained 6.9% per year for the last 9 years. On a 10K investment, that is about 800 extra bucks for VTI. Possible reasons may be higher expenses for ITOT (granted now they are quite close, I'm not sure what the difference was in past years) and ITOT has a slightly smaller Small Cap position. Plus they track a different index.

I'll leave it to you to decide what is best, I'm merely passing on a tidbit of information to you.
red5
 
Posts: 179
Joined: 1 Apr 2012

Re: VTI vs ITOT

Postby akpk » Tue May 14, 2013 6:40 pm

You make a very good point. This crossed my mind too and that's why i am reluctant to go for ITOT ( VTI is much broader with 3500+ stocks i think. ITOT is just 1500.). I wish fidelity offered VTI free trading like for some ishares etfs.
akpk
 
Posts: 8
Joined: 13 May 2013

Re: VTI vs ITOT

Postby LazyNihilist » Tue May 14, 2013 7:55 pm

akpk,

TDAmeritrade has quite a few commission free ETF's. 32 from Vanguard I believe with VTI among them.
I used this a few years back, but I moved everything to Vanguard Mutual Funds for simplicity.
The only problem is Entropy, leading to the eventual heat death of the universe. [Seen on /.]
User avatar
LazyNihilist
 
Posts: 700
Joined: 19 Feb 2011
Location: 5.82% (xirr)

Re: VTI vs ITOT

Postby Middle » Tue May 14, 2013 8:11 pm

If you are using Fidelity why not use Spartan Total U.S. Stock Index? Very comparable to VTI. Unless you really want the ETF for some reason.
Middle
 
Posts: 188
Joined: 8 Feb 2011

Re: VTI vs ITOT

Postby red5 » Wed May 15, 2013 5:28 am

VTI's slight outperformance could always go the other way too, perhaps ITOT would outperform in an environment where the large caps are outperforming the small caps ? Who knows.
red5
 
Posts: 179
Joined: 1 Apr 2012

Re: VTI vs ITOT

Postby akpk » Wed May 15, 2013 2:31 pm

Thank you all. All very Good and helpful advice.

Yesterday, i read a thread in this forum where some wise person made a suggestion that over the long period, interest you earn on funds adds more to your portfolio than the price increase. This had me thinking. With ETF's i think i will have to manually ago and reinvest the yearly dividends. I am leaning more towards total market index mutual fund (vanguard or fidelity) now.

Thanks again for the wonderful points. I am a boglehead now.
akpk
 
Posts: 8
Joined: 13 May 2013


Return to Investing - Help with Personal Investments

Who is online

Users browsing this forum: Austintatious, cromwell, Cuzz35, FAST Enterprise [Crawler], Louis Winthorpe III, MooseandBear, nebraskaman, placeholder, Ryan O, SteveGo, teacher, WHL, YttriumNitrate, Zabar and 103 guests