Announcement

Collapse
No announcement yet.

S&P 500 which one?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • S&P 500 which one?

    I have decided in my solo K I'm going to choose an index fund that tracks the S&P. I am choosing between Vanguard index 500 (VFIAX) which has no transaction fee and expense ratio 0.04% and Fidelity 500 (FXAIX) which has transaction fee but expense ratio 0.01%. Then again, I look at Schwab (SWPPX) and there's no transaction fee and 0.02% expense ratio. How do I choose between these. The investments look very similar but the cost is different. What am I missing??

  • #2
    "What am I missing??" Time spent noodling it. Where do you have your account? There, done.

    Comment


    • #3
      why are you picking s&p in the first place?

      Comment


      • #4
        I have Vanguard for my Roth, Fidelity for my 401k, and opened a solo K with e trade recently. Trying something new in this smaller account so figured Id do at least a certain proportion of S&P

        Comment


        • #5
          Differences are minimal. I have VOO in one account and SPY in another.

          Comment


          • #6
            Originally posted by NeuroCM View Post
            I have Vanguard for my Roth, Fidelity for my 401k, and opened a solo K with e trade recently. Trying something new in this smaller account so figured Id do at least a certain proportion of S&P
            i dont pick s%p when a total market fund exists.

            but to answer your original question: you choose the cheapest one. they are literally all the same.

            Comment


            • #7
              In 2020, you should not be paying a transaction fee for an S&P 500 fund. You did not indicate where your assets are held, but you can likely buy it for no fee there.

              For perspective, when I first bought the Vanguard S&P 500 fund, the expense ratio was 0.4%, and it was the cheapest mutual fund available. Today, they are practically free. Do not overthink it.

              Comment


              • #8
                I'd definitely avoid the transaction fee. Wouldn't that hit with each contribution?
                $1 saved = >$1 earned. ✓

                Comment


                • #9
                  These fees are so low they make no difference

                  Comment


                  • #10
                    They're all the same. I keep total stock market index funds in my retirement accounts and s&p 500 fund in taxable for purposes of TLH and avoiding a wash sale rule. The s&p500 and total market funds have such high correlation that I consider them identical when looking at my portfolio.
                    Last edited by jhwkr542; 12-31-2020, 12:57 PM.

                    Comment


                    • #11
                      Nasdaq/100 was the index to be in the past few years, perhaps SP or total markets will start catch-up. I shifted there 2014.

                      Anyway, I think total market outperformed SP index this year by about 33% (20% vs. 15%, VTSAX vs VFIAX).

                      Comment


                      • #12
                        Originally posted by EntrepreneurMD View Post
                        Anyway, I think total market outperformed SP index this year by about 33% (20% vs. 15%, VTSAX vs VFIAX).
                        google.

                        total US 20.4% YTD
                        s&p500 17.6% YTD

                        thats 16% difference.

                        Comment


                        • #13
                          Originally posted by Peds View Post

                          google.

                          total US 20.4% YTD
                          s&p500 17.6% YTD

                          thats 16% difference.
                          Everywhere I check I see 15.6% SPX YTD. I also saw this number on CNBC. Interestingly though you are correct, I see VFIAX at 17.6% so not sure where that difference cones from. I mistakenly assumed VFIAX just mirrored SPX.

                          S&P 500 PR (SPX) Quote | Morningstar

                          S&P 500 Index - CNNMoney.com

                          Vanguard 500 Index Admiral (VFIAX) Performance | Morningstar

                          Although most would still be happy with 16% more.

                          Thanks!

                          Comment


                          • #14
                            Originally posted by Peds View Post

                            google.

                            total US 20.4% YTD
                            s&p500 17.6% YTD

                            thats 16% difference.
                            I would hope one chooses with a little more understanding. YTD regardless is a poor basis. Personal preference. Know what you own.

                            Comment


                            • #15
                              Originally posted by jhwkr542 View Post
                              They're all the same. I keep total stock market index funds in my retirement accounts and s&p 500 fund in taxable for purposes of TLH and avoiding a wash sale rule. The s&p500 and total market funds have such high correlation that I don't consider them identical when looking at my portfolio.
                              That's what I do as well, but in reverse.

                              Comment

                              Working...
                              X