Vanguard and Charles Schwab are two big players in the investing world catering to regular folks like you and me . Vanguard’s got some seriously popular mutual funds and ETFs and they’re the top dog when it comes to asset management . But hey just because Vanguard is a solid choice doesn’t mean we shouldn’t explore other options right ? Diversification is key my friend . So let’s take a closer look at SWTSX and VTSAX two similar funds that can spice up your investment game.
Swtsx vs Vtsax : Who’s Behind Them ?
Before we dive into the nitty gritty let’s get to know the companies behind these funds . Vanguard is a big shot in the asset management world overseeing a mind boggling $1.3 trillion in assets . That’s trillion with a “T” . No wonder their funds are so darn popular . They’re all about keeping costs low and quality high . Now Charles Schwab may not be in the same league as Vanguard but they’ve been helping folks reach their financial goals since 1971 . They handle over $300 billion in investor assets and offer a wide range of quality funds and products with a focus on retirement investing.
Swtsx vs Vtsax : What Do They Track ?
VTSAX also known as Vanguard Total Stock Market Index Fund Admiral Shares technically isn’t an index fund but it behaves like one most of the time . It first hit the scene back in 1992 and includes companies of all sizes large cap , mid cap and small cap . So it’s like a big ol’ snapshot of the entire stock market . On the flip side SWTSX (Schwab Total Stock Market Index Fund) is the real deal an actual index fund that tracks the Dow Jones U.S. Total Stock Market Index . It covers the whole market too including companies of all sizes . So in terms of what they track SWTSX and VTSAX are practically identical.
Swtsx vs Vtsax : Which One Costs Less ?
Let’s talk money my friend . Expense ratios are the fees you pay for investing in a mutual fund or ETF . Both SWTSX and VTSAX have pretty similar expense ratios . VTSAX even though it’s technically a mutual fund has a ridiculously low expense ratio of 0.04% . That’s a steal considering the average expense ratio for mutual funds is around 0.75% . Now , SWTSX is an index fund which means it has even lower expenses . Its expense ratio sits at a sweet 0.03% . Sure the difference of 0.01% might not make you rich overnight but hey it’s good to know you’re getting a good deal.
Swtsx vs Vtsax : How Much Do You Need to Get Started ?
Now let’s talk about minimum initial investments . This is the least amount of money you need to throw into a fund to get started . With VTSAX you gotta pony up a minimum of $3,000 at the beginning . That’s because mutual funds tend to have higher costs per investor . But once you’ve made that initial investment you can add as little as $1 for subsequent investments . On the other hand SWTSX is an index fund with almost negligible costs per investor . You just need enough to buy one share which is way less than the minimum for VTSAX . So if you’re short on cash SWTSX might be the way to go.
Swtsx vs Vtsax : Which One Is Better ?
Now the million dollar question : which fund is better ? Well my friend it’s like trying to choose between chocolate and vanilla ice cream . Both SWTSX and VTSAX are fantastic investments . VTSAX may have a slight edge when it comes to performance but SWTSX boasts a slightly lower expense ratio . Overall , the difference in returns is probably not a deal breaker . These funds have consistently delivered returns of over 14% over a 10 year period . The real trick is to start investing in the first place . Honestly you can’t go wrong with either SWTSX or VTSAX . They’re both winners.
Swtsx vs Vtsax : Final Thoughts
At the end of the day there’s not much to choose between SWTSX and VTSAX . They’re like two peas in a pod ticking all the right boxes . From their low expense ratios to their diverse holdings and impressive performance they’re both solid investment choices . So whether you pick SWTSX vs VTSAX or both you’re actually making a really wise move . So go ahead and dive into the world of SWTSX and VTSAX you won’t be disappointed .
