New HSA provider freezing VTSAX fund

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Topic Author
meadowrue
Posts: 775
Joined: Wed May 04, 2022 3:55 pm

New HSA provider freezing VTSAX fund

Post by meadowrue »

Company is switching HSA providers and the new provider doesn’t offer VTSAX (I’m 100% invested in that fund). Closest new option is VIIIX. How similar is this to VTSAX?

VTSAX will be frozen as an investment option but I am able to leave my investment in there and sell at any time. I just can’t add any new $$.

I plan to leave my approx. $20K VTSAX investment alone, and then direct new contributions to VIIIX, maybe with a portion going to VIGIX. I haven’t seen either of these funds mentioned much on this forum compared to VTI, VOO and VTSAX. Are they just as good? Expense ratios are low.

Thanks!
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
giddyup969
Posts: 95
Joined: Mon Nov 30, 2020 9:27 am

Re: New HSA provider freezing VTSAX fund

Post by giddyup969 »

meadowrue wrote: Tue Apr 02, 2024 7:21 pm Company is switching HSA providers and the new provider doesn’t offer VTSAX (I’m 100% invested in that fund). Closest new option is VIIIX. How similar is this to VTSAX?

VTSAX will be frozen as an investment option but I am able to leave my investment in there and sell at any time. I just can’t add any new $$.

I plan to leave my approx. $20K VTSAX investment alone, and then direct new contributions to VIIIX, maybe with a portion going to VIGIX. I haven’t seen either of these funds mentioned much on this forum compared to VTI, VOO and VTSAX. Are they just as good? Expense ratios are low.

Thanks!
Transfer to Fidelity.
mikejuss
Posts: 2924
Joined: Tue Jun 23, 2020 1:36 pm

Re: New HSA provider freezing VTSAX fund

Post by mikejuss »

I wouldn't sweat it: VIIIX is basically a Standard & Poor’s 500 index fund.
50% VTSAX | 25% VTIAX | 25% VBTLX (retirement), 25% VTEAX (taxable)
Topic Author
meadowrue
Posts: 775
Joined: Wed May 04, 2022 3:55 pm

Re: New HSA provider freezing VTSAX fund

Post by meadowrue »

giddyup969 wrote: Tue Apr 02, 2024 7:25 pm
meadowrue wrote: Tue Apr 02, 2024 7:21 pm Company is switching HSA providers and the new provider doesn’t offer VTSAX (I’m 100% invested in that fund). Closest new option is VIIIX. How similar is this to VTSAX?

VTSAX will be frozen as an investment option but I am able to leave my investment in there and sell at any time. I just can’t add any new $$.

I plan to leave my approx. $20K VTSAX investment alone, and then direct new contributions to VIIIX, maybe with a portion going to VIGIX. I haven’t seen either of these funds mentioned much on this forum compared to VTI, VOO and VTSAX. Are they just as good? Expense ratios are low.

Thanks!
Transfer to Fidelity.
Why? Are the investment options that much better than Vanguard? I don’t like the idea of a 30-60 day transfer and being out of the market that whole time. But I know it’s a popular option, so maybe I’m missing something?
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
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greenrebellion
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Re: New HSA provider freezing VTSAX fund

Post by greenrebellion »

VIIIX is a great option
- greenrebellion
Mike Scott
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Joined: Fri Jul 19, 2013 2:45 pm

Re: New HSA provider freezing VTSAX fund

Post by Mike Scott »

You can't move your HSA to Vanguard because they don't do HSA accounts. Fidelity is probably the best HSA provider if you are planning to move funds. But there is really no reason to move if the S&P index is low cost.
rkhusky
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Re: New HSA provider freezing VTSAX fund

Post by rkhusky »

VIIIX and VOO are the same.
HomeStretch
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Re: New HSA provider freezing VTSAX fund

Post by HomeStretch »

I agree that VIIIX is a great option.

VIIIX is Vanguard’s institutional S&P500 fund. Institutional funds often have lower ERs than comparable retail funds. The fund has ~90% correlation with VTSAX and has had similar investment returns.
Topic Author
meadowrue
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Joined: Wed May 04, 2022 3:55 pm

Re: New HSA provider freezing VTSAX fund

Post by meadowrue »

HomeStretch wrote: Tue Apr 02, 2024 8:14 pm I agree that VIIIX is a great option.

VIIIX is Vanguard’s institutional S&P500 fund. Institutional funds often have lower ERs than comparable retail funds. The fund has ~90% correlation with VTSAX and has had similar investment returns.
Thank you!
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
Topic Author
meadowrue
Posts: 775
Joined: Wed May 04, 2022 3:55 pm

Re: New HSA provider freezing VTSAX fund

Post by meadowrue »

Mike Scott wrote: Tue Apr 02, 2024 7:51 pm You can't move your HSA to Vanguard because they don't do HSA accounts. Fidelity is probably the best HSA provider if you are planning to move funds. But there is really no reason to move if the S&P index is low cost.
Sorry, I meant that the funds available in my new HSA are Vanguard funds, not that I was going to transfer to Vanguard as a provider.
“We must free ourselves of the hope that the sea will ever rest. We must learn to sail in high winds.”—Aristotle Onassis
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