VTI vs VTSAX (ETF vs Mutual Fund)

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Leesbro63
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VTI vs VTSAX (ETF vs Mutual Fund)

Post by Leesbro63 » Thu Apr 27, 2017 11:13 am

I have a large position of VTI in my Vanguard brokerage account. It's a long story but I originally bought it in a non-Vanguard brokerage years ago.

Now that Vanguard is cutting fees on VTSAX (Vanguard Total Market Admiral Shares), should I and can I try to convert VTI to that? What's the difference between leaving VTI alone and converting to VTSAX. Can I even do so without incurring large cap gains?

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SpringMan
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Re: VTI vs VTSAX (ETF vs Mutual Fund)

Post by SpringMan » Thu Apr 27, 2017 11:19 am

I would keep what you have. You can't convert an ETF to a mutual fund. You could convert VTSAX to VTI but that is not what you asked. To sell one and buy the other could trigger a taxable event. The expense ratio is the same for both.
Best Wishes, SpringMan

livesoft
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Re: VTI vs VTSAX (ETF vs Mutual Fund)

Post by livesoft » Thu Apr 27, 2017 11:49 am

The expense ratio of VTI will surely follow along with changes in the expense ratio of VTSAX. Or do you have inside information that it won't?
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Tamalak
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Re: VTI vs VTSAX (ETF vs Mutual Fund)

Post by Tamalak » Thu Apr 27, 2017 11:52 am

VTI already shows as 0.04% ER on my account. Don't change for the sake of ER.

If anything, I like the ETF a bit better.. easier to trade, updates faster, can buy it in more accounts, probably will be more popular in the future than the mutual fund. I wish I had started with it.

Topic Author
Leesbro63
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Re: VTI vs VTSAX (ETF vs Mutual Fund)

Post by Leesbro63 » Thu Apr 27, 2017 12:17 pm

livesoft wrote:The expense ratio of VTI will surely follow along with changes in the expense ratio of VTSAX. Or do you have inside information that it won't?
I have no such info and really haven't been following this...hence my question here.

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jhfenton
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Re: VTI vs VTSAX (ETF vs Mutual Fund)

Post by jhfenton » Thu Apr 27, 2017 12:54 pm

Leesbro63 wrote:
livesoft wrote:The expense ratio of VTI will surely follow along with changes in the expense ratio of VTSAX. Or do you have inside information that it won't?
I have no such info and really haven't been following this...hence my question here.
The ER of both VTI and VTSAX is 0.04%. That was the ER last year for both share classes per the annual report and became official with the release of the new prospectus today.

The way Vanguard allocates expenses between share classes of funds, ETF shares and Admiral shares almost always have the same ER.

Topic Author
Leesbro63
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Re: VTI vs VTSAX (ETF vs Mutual Fund)

Post by Leesbro63 » Thu Apr 27, 2017 1:52 pm

Well, my answer is very clear. Don't just do something, stand there! Thank you all.

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