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VITSX vs VTSAX: Which Vanguard ETF Is Better?

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We Compare VITSX vs VTSAX.

Vanguard Total Stock Market Index Fund Institutional shares and Vanguard Total Stock Market Index Fund Admiral shares have shown strong performance over the years.

These two funds have the same investment holdings and track the CRSP and U.S. Total Index performance with a slight difference in the 10-year return performance and overall turnover.

They have over $1 Trillion and $240 billion in total net assets.

However, despite the striking similarity between funds, they are not entirely the same as they offer different values and return on investment to influence the investor’s decision.

This article gives an overview of both funds and a general opinion on what fund is better.

VITSX vs VTSAX Graphic

 

VITSX vs VTSAX

The main difference between VITSX and VTSAX is that VTSAX is an Admiral Fund while VITSX is an Institutional Fund. VTSAX and VITSX track the same underlying index, the CRSP U.S. Total Market Index.

The primary difference between VTSAX and VITSX is their minimum investment. VITSX has a minimum investment of $5 Million, while VTSAX has a minimum investment of $3,000.

This difference makes VITSX unavailable to average investors unless purchasing the fund through an employer such as a 401k or 403b.

Vanguard Total Stock Market Index Institutional shares VITSX seeks to track the performance of the CRSP U.S. Total Market Index.

The fund uses an indexing sampling approach to track the performance of the U.S. large-mid-small and Micro Cap stocks.

They are covering nearly 100% of the U.S. investable equity.

The fund evaluates holdings by their growth and the value of stocks across the market cap.

CRPS uses various measures to reduce turnover and trading fees around the fund’s index market cap across the entirety of the investable U.S. equity market giving small stocks equal opportunity to trade.

 

VITSX

VITSX offers an expense ratio of 0.02% to 1.25% and an average of 0.07% fewer shares to all of Vanguard’s share classes.

The fund’s relatively low expense fee for its share classes falls into the Morningstar cheapest rating of the Gold category, aside from the investor’s class.

VITSX as an index fund is also available as an ETF, offers a minimum initial investment of $5 million, and is geared primarily toward institutional and high-net-worth individuals.

VITSX key characteristic is the index sampling that holds a large diversified collection of securities that, in total, nearly covers the complete index.

 

VTSAX

Vanguard Trade Stock Market Index Fund Admiral Shares VTSAX seeks to track the performance of CRSP US Total Market Index.

The fund is a mutual and index fund, meaning that it’s a collection of different stocks that can be purchased together and reflects a larger stock market.

The fund provides investors exposure to the entire U.S. equity stock market, including large-mid-small growth cap stocks.

Founded in 1992, the fund became part of the Admiral share program in 2000. The Admiral share class combines low expense ratios with low investment minimums, making investing affordable.

The class’s low expense ratio is approximately 41% lower than the standard investor share class.

The fund operates at an expense ratio of 0.04%.

VTSAX offers a minimum investment of $3,000.

Potential investors looking to invest with Vanguard for less than $3,000 can buy the Vanguard Total Index VTI.

VTI is converted to VTSAX after reaching the $3,000 initial investment.

VTSAX key characteristics are its low cost and extensive diversification.

The fund is geared toward individual and also institutional investors.

 

VITSX vs VTSAX Performance

VITSX and VTSAX both track the same CRSP U.S. Total Market Index. However, over the past decade, VITSX has outperformed VTSAX by 0.01%.

VITSX has given a return of 8.04% since its inception in 1997, with -14.24% over the past year, 9.64% over the past 3 years, 10.53% over the past 5 years, and 12.52% over the past decade.

VTSAX also has given a return of 7.20% since its inception in 2000, with -14.24% over the past year, -8.36% over the past 3 years, 10.52% over the past 5 years, and 12.51% over the past decade.

It is important to note that VTSAX has outperformed VITSX with 0.01% in YTD returns and overall turnover. The above performance data is a Vanguard fund balance of $10,000, and a $20 annual account service fee is deducted for a balance below $10,000.

If this fee is deducted, the performance will be lower.

 

VITSX Holdings vs VTSAX Holdings

VITSX and VTSAX have the same holdings, with 25.8% in technology.

Here are the top 10 holdings in VITSX and VTSAX:

VITSX vs VTSAX Holdings

These holdings comprise 22.33% of total assets diversified across different market sectors.

Here are the market sectors:

VITSX and VTSAX Sectors

 

VITSX vs VTSAX Overlap

VITSX vs VTSAX Overlap

Benchmark:
Spliced Total Stock 1.0
Market Index.
Dow Jones U.S. Total. 1.0
Stock Market Index

In the 1-year return, VITSX has made 14.24%, covering the benchmark by 0.02%.

Both fund invested market sectors have the same basic utility of 2%.

 

VITSX vs VTSAX Differences

The main difference between VITSX and VTSAX is that VITSX as an institutional share class offers lower fees to institutional and high net-worth investors, while VTSAX as an Admiral share offers lower fees to the standard investor.

For VTSAX, investors with less than a $3,000 minimum requirement can buy VTI.

VTI can be converted to VTSAX after reaching the minimum initial investment.

Other factors that differentiate the funds are:

Expense Ratios

This is the cost in percentage used to cover the fund’s expenses. VITSX expense ratio is 0.03%, while the VTSAX ratio is 0.04%.

The percentage is on every $10,000 fund balance.

The annual account service fee is deducted for the fund balance below the amount.

Both funds have a low expense ratio, but the insignificant 0.01 difference can save up for the institutional investor.

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Minimum Investment

This is the least amount needed to purchase shares.

VITSX’s minimum investment is $5 million, while VTSAX’s minimum investment is $3,000.

 

Real-Time Pricing

Both VITSX and VTSAX are index funds and are also available as ETFs.

This means that investors can trade funds at the end of the day and throughout the day.

VITSX and VTSAX as ETFs start at the price of one share.

 

VITSX Description

Vanguard Total Stock Market Index Institutional shares (VITSX) tracks the performance of CRSP U.S. Total Market Index.

It also represents approximately 100% of the equity market.

Fund Management: Index
Asset Class: Domestic Stock-General
Category: Large Blend
Expense Ratio: 0.03%
Minimum investment: $5 Million
Risk/reward scale: Level 4

 

VITSX Performance

Vanguard Total Stock Market Index Institutional shares (VITSX) have performed well over the last decade with an average 12.52% yearly return.

VITSX Performance

 

VITSX Holdings

VITSX has a total of 4,098 stocks; these holdings make up 22.33% of total assets and include:

VITSX Holdings

 

VTSAX Description

Vanguard Trade Stock Market Index Fund Admiral Shares (VTSAX) tracks the performance of CRSP U.S. Total Market Index.

It also represents approximately 100% of the equity market.

Fund Management: Vanguard Equity Index Group
Asset Class: Domestic Stock-General
Category: Large Blend
Expense Ratio: 0.04%
Minimum investment: $3000
Risk/Reward Scale: Level 4

 

VTSAX Performance

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is famous for many reasons, of which consistent returns are a significant part.

VTSAX Performance Chart

Its risk level is similar to that of the S&P 500.

VTSAX Performance Chart

 

VTSAX Holdings

Vanguard’s VTSAX is primarily made up of Apple, Microsoft, Google, Amazon, and Tesla and provides exposure to over 3500 stocks.

Here are the top 10 holdings for VTSAX:

VTSAX Top 10 Holdings

Major sectors in the index include:

  • Healthcare
  • Technology
  • Consumer Services
  • Financials
  • Industrials

The top 10 holdings make up 25% of its total net assets.

 

Which Is Better VITSX or VTSAX?

VITSX and VTSAX offer diversified stocks and provide exposure to the total U.S Stock Market, including the growth of stocks at different market caps. Moreover, the diversified stocks keep risk and volatility low, operate at a low expense ratio, and are almost identical in performance, with a slight difference of 0.01%.

Both funds as index funds are also available as ETFs.

Which is better depends on your preference of expense ratio, performance between, and fund accessibility.

You will also prefer VITSX to get the lowest cost fund.

However, VTSAX is better for easy access to funds as potential investors might not have the minimum requirement for VITSX.

The easy access to funds has given VTSAX an edge over VITSX as the fund has outperformed VITSX with 0.01% in YTD returns of -19.71% and an overall turnover of 8%.

Despite VTSAX’s performance, investors should not neglect VITSX’s low expense ratio.

The expense ratio can increase your returns on investment.

The expense ratio for VITSX is 0.03%, and 0.04% for VTSAX.

This means fund expenses for each $10,000 investment for VITSX is just $3, and that of VTSAX is $4.

For investors, 0.01% is a good way to save costs and increase returns.

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Is VITSX or VTSAX Better For Financial Independence?

The differences between VITSX and VTSAX are insignificant. However, these differences cannot be neglected as they affect the fund’s return on investment.

For new and potential investors starting small, you could opt for VTSAX and grow the funds to the minimum before changing to VITSX.

However, VTSAX YTD performance and turnover are significant factors to consider.

The expense ratio difference between these two funds can improve your return on investment, making VITSX the most preferred fund.

Both funds are an excellent choice for an investor of any share class.

If you’ve decided on what Vanguard fund best suits your investment plan, you can use any brokerage firm to switch funds or buy VTI before automatically switching to VTSAX.

You can also buy and sell your Vanguard fund and ETF directly through Vanguard.

Investors buying directly from Vanguard get the lower fees benefit and customer service to walk them through the process.

Both VITSX and VTSAX can get you to Financial Independence. They both have the same return on investment with a slight difference and track the same index.

However, in the long run, fund fees can increase returns.

If you already have investments in VTSAX and have reached the minimum investment requirement, I would consider switching it to VITSX.

By switching to VITSX, you get a lower fund expense ratio with the same portfolio performance.

 

My Winner: VTSAX

 


Disclaimer
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This information is my opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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