Investment returns and principal value will fluctuate, so that investors' shares, when sold, may be worth more or less than their original cost. There are many accounts to choose from depending on your goals and investment needs. Click a fund name to view the fund profile for additional detail. They offer investing accounts, retirement account, and accounts designed to save money for children’s education. The most important thing is to get started. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Total Net Assets … The primary difference between Vanguard Growth Index Fund Admiral Shares (VIGAX) and Vanguard 500 Index Fund Admiral Shares (VFIAX) is the target index fund they desire to track. Then, you will be well on your way to Financial Independence and Early Retirement! The performance data shown represents past performance, which is not a guarantee of future results. Below is the comparison between VFINX and VFIAX. Both VIIIX and VFIAX are mutual funds. Failure to maintain an account balance of $3000 will cause the shares to be converted to Investor Shares (VFINX). VFIAX traded for $124.88 on the day of its inception in November, 2000. VIGAX and VFIAX are can both very good investments depending on your investment goals. In the case of VOO, I could just buy 11 shares for a total of $2970 (@$270/share). You may also want to check out the following VINIX comparisons that investors often look for on Finny. Start a free trial. Go ad free. Home » What’s the Difference Between VFINX and VFIAX? VIGAX vs VFIAX. I meet the minimum investment requirements and don’t really care for the benefits of one over another. You can get started at Vanguard (Also, there is no incentive for me to endorse them. VFIAX is Vanguard’s S&P 500 Index Fund for Admiral Class Shares. Upgrade to remove this ad. This makes VIGAX is a great option for those looking to pay fewer taxes. Although both track the S&P 500 Index, they differ in expense ratios and minimum account balance requirements. Although they track the same portfolio, there are some key things to know and I’m going to go in detail on why these differences matter for not only these two funds but also other investor and admiral grade shares. VFINX is a mutual fund created by Vanguard in 1976 and was the first index fund to track the S&P 500 for individual investors. I would consider investing in the admiral fund or ETF about the same it just depends on your preference. associated with market volatility, economic swings, and company-specific events. At the time of this article, it’s 10-year average annual return is 11.54% vice the S&P 500’s 11.69%. You may also want to check out the following VFINX comparisons that investors often look for on Finny, You may also want to check out the following VFIAX comparisons that investors often look for on Finny. VIGAX tracks the CRSP US Large Cap Growth Index which focuses on large-capitalization growth stocks. Click a fund name to view the fund profile for additional detail. VFIAX vs VTI; Or use Finny Compare Wizard to create a comparison you’d like to see. That is why I mainly invest in VUG (VIGAX’s ETF equivalent) within my taxable account. VINIX has a higher 5-year return than VFIAX (13.65% vs 13.64%). And yes making sure to shelter your dividends in a tax advantaged account (401k, roth, etc..) goes a long way! Disclaimer: Past performance does not guarantee future performance. Managing risk and practicing due diligence is still a must for any investment. VIGAX tracks the CRSP US Large Cap Growth Index which focuses on large-capitalization growth stocks. VFINX has a higher expense ratio than VFIAX (0.14% vs 0.04%). Vanguard Growth Index Fund Admiral Shares (VIGAX) is the admiral version of the Vanguard Growth ETF (VUG). Save my name, email, and website in this browser for the next time I comment. My preference would have been VTSAX, unfortunately Fidelity only offers VIGIX, VIVIX and VIIIX (all large cap domestic funds) to my company. You can use this module to analyze the comparative aspects of Vanguard and Vanguard across most of their technical and fundamental indicators. All other performance data are adjusted for purchase and redemption fees where applicable. VTSAX vs VTSMX: Which Should You Buy And Why. So, if you wanted to buy VFIAX, you would need to first open a Vanguard account. Now imagine if you have a portfolio of $100,000 or even $500,000. VFINX has a higher expense ratio than VFIAX (0.14% vs 0.04%). ©2007 Morningstar, Inc. All Rights Reserved. Your plan offers the following diversified lineup of funds. VFIAX is better than VFINX because of expense ratios. Although many funds now track this index, Vanguard has the right to tout that it was the trailblazer for this type of fund. That means your money more than would have doubled despite: If you are a passive investor, choosing a fund that follows the S&P 500 has proven to be a trustworthy method of building wealth. VFINX description . He has been looking at some of the Vanguard Mutual Funds and was having a hard time deciding which on to get started with. Below is the comparison between VINIX and VFIAX. So if you are planning to invest in a taxable account I would strongly recommend thinking about the tax drag of your investment choice. You can consider VFIAX if you prefer to invest in a fund with more diversification. If a mutual fund that follows the S&P 500 sounds good but you prefer ETFs, check out VOO or SPY for a very similar performance over time. Both VINIX and VFIAX are mutual funds. Below … Vanguard vs Vanguard comparative analysis provides an insight into diversification possibilities from combining Vanguard and Vanguard into the same portfolio. That being said, SPY does experience a lot more volume on average and as a result, it is going to be slightly more liquid and easier to fill orders. The minimum balance for VFIAX is $3000. differences between ETFs and mutual funds, 7 of the Best Investments for a Recession, Vanguard 500 Index Fund – Investor Shares. and thanks for stopping by! As for the second part of the question. The primary difference between Vanguard Growth Index Fund Admiral Shares (VIGAX) and Vanguard 500 Index Fund Admiral Shares (VFIAX) is the target index fund they desire to track. Let’s dig a little deeper to see which is better for your situation. I could write a whole article on the differences between mutual funds. In general, the relationship is as follows: As an investor, you can use this information to meet your investment goals. The Fund employs an indexing investment approach. VIGAX is largely made up of Microsoft, Apple, Amazon, Alphabet, and Facebook, but also provides exposure to over 200 stocks. Although both track the S&P 500 Index, they differ in expense ratios and minimum account balance requirements. Credit Pamela Sisson Follow @inspire.to.fire for more! Please use the input box below to enter a few concurrent symbols you would like to analyze. I get a lot of questions about which Vanguard Admiral Fund is the best investment. Since VFIAX follows the performance of S&P 500, it’s really easy to see how it has performed historically. Just want to make sure I’m clear about which fund is best for which IRA. VFINX and VFIAX offer about the same return but VFIAX is going to cost you less to manage. a As of 11/05/2020. Performance data for periods of less than one year do not reflect the deduction of purchase and redemption fees. A friend of mine has been interested in starting to invest. VFINX has a lower 5-year return than VFIAX (14.79% vs 14.91%). Past performance is no guarantee of future results. It was created 11/13/2000 and offers a lower expense ratio but requires a larger minimum balance. The downside to a growth strategy is higher volatility.