Should I invest in Vfiax or VOO? (2024)

Should I invest in Vfiax or VOO?

VFIAX does not pay capital gains like typical mutual funds. Vanguard account holders who prefer a more active investing role may choose VOO. Returns, fees, and holdings are virtually identical. The difference is how you buy and sell an ETF vs how you buy and sell a mutual fund.

Which is better, VFIAX or VOO?

The returns of VFIAX and VOO have been nearly identical since both funds track the S&P 500 index, but VFIAX has a slightly higher expense ratio, making it cost more to invest in. Therefore, the difference in returns between VFIAX and VOO is very small, but it favors VOO slightly due to its lower expense ratio.

Is VFIAX a good investment?

VFIAX's 5-year performance has produced a positive alpha of 0, which means managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns. Exploring the equity holdings of a mutual fund is also a valuable exercise.

Is it wise to invest in VOO?

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Is it better to buy VTI or VOO?

Both have the same expense ratio and similar dividend yield, so you should choose whichever one you prefer based on the fund's strategy. If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI.

Are VOO and VFIAX the same thing?

The key difference between VOO and VFIAX is that VOO is an ETF and VFIAX is a mutual fund. This brings about a difference in that VOO can be traded intraday on an exchange, just like a stock, meaning investors may enter a position at different price points.

Is VOO a good long term investment?

Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.

What is the 3 year return for VFIAX?

Does VFIAX pay a dividend?

How much is Vanguard 500 Index Fd Admiral Shs's dividend? VFIAX pays a dividend of $1.54 per share. VFIAX's annual dividend yield is 1.56%.

Does VFIAX track S&P 500?

The Fund seeks to track the performance of its benchmark index, the S&P 500. The Fund employs an indexing investment approach. The Fund attempts to replicate the target index by investing all of its assets in the stocks that make up the Index with the same approximate weightings as the Index.

Why is VOO so popular?

In fact, Vanguard's index funds and ETFs (including VOO, which we just discussed) are popular choices with investors, thanks in part to their low costs and competitive long-term performances.

Is VOO a good investment in 2024?

Vanguard S&P 500 ETF (VOO)

The Vanguard S&P 500 ETF offers investors a great way to get exposure to a key broad market benchmark, and it does so at a notably low cost. Another plus: The fund's dividend yield is a proxy for the overall stock market's yield.

Is VOO too expensive?

VOO and VTI charge 0.03% annually, while SPY charges a slightly higher 0.09%. This means that for every $10,000 you invest in VOO, for example, you would pay just $3 a year in fees. If that sounds incredibly cheap, it is! The ETF has become one of the most cost-efficient investment vehicles there is.

What to pair with VOO?

Many people pair VOO with the Vanguard Total Bond Market ETF (BND) in a broader portfolio. The fixed income ETF has $95 billion in assets and is the largest bond ETF trading in the U.S. BND has two-thirds of its assets in U.S. government bonds, with most of the remainder in investment-grade corporate bonds.

What is the 10 year return on VOO vs VTI?

In the past year, VOO returned a total of 24.48%, which is slightly higher than VTI's 24.08% return. Over the past 10 years, VOO has had annualized average returns of 12.50% , compared to 11.87% for VTI. These numbers are adjusted for stock splits and include dividends.

Why is VOO the best ETF?

The goal of the Vanguard S&P 500 ETF is to track the returns of the S&P 500 index. VOO appeals to investors because it's well-diversified and is made up of equities of large corporations—called large-cap stocks.

What is Vanguard's best performing ETF?

How often does VFIAX pay dividends?

The fund normally distributes its dividend income quarterly and its capital gains annually.

Is VFIAX tax efficient?

VTSAX and VFIAX are tax-efficient funds because they are both passively managed index funds and do not look to trade frequently. Therefore, they don't generate high amounts of turnover or high amounts of capital gains distributions/obligations.

Which ETF has the best 10 year return?

What's the best ETF to buy right now?

What is the future prediction for VFIAX?

Based on 504 Wall Street analysts offering 12 month price targets to Vanguard 500 Index Fd Admiral Shs holdings in the last 3 months. The average price target is $531.83 with a high forecast of $626.54 and a low forecast of $434.00. The average price target represents a 15.96% change from the last price of $458.63.

Which Vanguard mutual fund outperforms the S&P 500?

Vanguard Russell 1000 Growth Index Fund (VRGWX)

VRGWX's 10-year average annual return beats the S&P 500's return over the same period. In fact, it was the second-best-performing diversified Vanguard stock fund over the past decade.

What is the best S&P 500 index fund?

Does VOO pay a dividend?

VOO has a dividend yield of 1.41% and paid $6.41 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.