VTSAX vs VTI: Vanguard Total Stock Market Mutual Fund or ETF?

VTSAX and VTI are the same fund in two forms. Both are Vanguard’s Total Stock Market fund and track the CRSP US Total Market Index, covering about 3,500 or more US companies of every size. VTSAX is the mutual fund version, with a $3,000 minimum and a 0.04% expense ratio. VTI is the ETF version, with no minimum beyond one share and a 0.03% expense ratio. Returns are virtually identical.

VTSAX vs VTI at a glance

• Type: VTSAX mutual fund (Admiral Shares); VTI exchange-traded fund
• Holdings: identical, the whole US stock market
• Expense ratio: VTSAX 0.04%; VTI 0.03%. On $10,000, $4 vs $3 a year
• Minimum: VTSAX $3,000; VTI one share, or less with fractional shares at many brokers
• Trading: VTSAX once a day at the closing price; VTI throughout the trading day
• Where to buy: VTSAX best at Vanguard, as other brokers may charge a fee; VTI commission-free almost everywhere
• Tax efficiency: both excellent

Why they are the same fund

Vanguard designed its ETFs as a share class of its existing mutual funds. VTI and VTSAX share the same pool of stocks. That is unusual: at most fund companies, the ETF and the mutual fund are separate. Because of this structure, VTSAX benefits from the ETF’s tax efficiency, and it has been very good at avoiding capital gains distributions.

Why choose VTSAX

• You invest at Vanguard and want automatic investing of exact dollar amounts.
• You like not seeing prices move during the day. Mutual funds price once a day, which can discourage impulse trading.
• You already meet the $3,000 minimum.

Why choose VTI

• You use another broker, such as Fidelity, Schwab or a robo-style app.
• You are starting with less than $3,000.
• You want slightly lower fees and the ability to trade during the day.
• You may change brokers. ETFs move easily between brokerages.

Is total market better than the S&P 500?

A total market fund adds small and mid-size companies to the large ones in the S&P 500. But because it is weighted by size, the S&P 500 companies still make up about 80% of it, so returns are very close. Compare the two directly in VTI vs VOO, and learn the basics in what is the S&P 500.

Fidelity and Schwab equivalents

• Fidelity: FSKAX (Total Market Index Fund), or FZROX, a zero-fee fund that can only be held at Fidelity.
• Schwab: SWTSX (Total Stock Market Index Fund) or the SCHB ETF.
• iShares: ITOT.

All are excellent. Pick the one that fits your broker. More options are in best index funds for beginners.

Can you switch from VTSAX to VTI?

At Vanguard, you can convert VTSAX shares to VTI without selling, so there is no tax. You cannot convert VTI back to VTSAX the same way. At other brokers, switching usually means selling, which can create a tax bill in a taxable account.

See what fee differences add up to in our investment fee calculator.

Frequently asked questions

Is VTSAX a good investment?

It is one of the most widely recommended funds for long-term investors: very low cost, very diversified, and simple. Like any stock fund, it can fall sharply in a downturn.

Does VTI pay dividends?

Yes, quarterly. Both funds have the same dividend yield, recently a little over 1%.

Can I hold VTI in a Roth IRA?

Yes, VTI and VTSAX both work well in IRAs and 401(k) brokerage windows. A Roth IRA is a great home for long-term growth. See how to invest $1,000 to get started.

This article is general information, not financial advice. Check current fees and minimums on Vanguard’s website.