What's the Difference between VTSAX vs VTI and Which Should You Pick?

Do you know that VTSAX is completely different from VTI? When it comes to choosing stock options, some investors become confused about the best stock option to choose from. However, most investors that understand the market usually go for VTSAX or VTI. What could be so special about these stock options?



Before a stock investor concludes on choosing a particular stock option, the person must be highly motivated by something. But you must compare the difference between these stock options before deciding on the best one to work with. In this article, you will learn about the difference between VTSAX vs VTI and decide which one to pick.

What is VTSAX?

Vanguard Total Stock Market Index Fund (VTSAX) was created as a mutual fund to offer deeper understanding to investors hoping to understand the small-cap, midcap, and large-cap value stocks and growth as traded daily on New York Stock Exchange (NYSE) and NASDAQ.



Through VTSAX, investors are able to pioneer index funds, which involve the collection of different companies. This implies that investors’ funds are not just channeled into one stock.



Instead, the VTSAX enables each investment fund to be distributed into stocks of different companies. Hence, investors stand the chance to enjoy more benefits from trading with VTSAX.

What is VTI?

The Vanguard Total Stock Market ETF (VTI), focuses on tracking the performance of index funds and measuring the investment benefits of the entire stock market. Unlike VTSAX, the VTI was created as an exchange-traded fund (ETF) to give investors an additional advantage towards making a successful investment decision for the stock market.

What is VOO?

Vanguard’s VOO exists as an exchange-traded fund (ETF), that focuses on monitoring the S&P 500 index by claiming ownership to the entire equities found within the S&P 500.



Generally, VOO is a fund that specifically serves the purpose of investing in the stock of some biggest companies in the USA. Over the years, Vanguard’s VOO has gained popularity to become one of the most mentioned ETFs.

What stocks are in VTSAX?

Currently, there are about 4109 stocks in VTSAX. But the top 100 best stocks in VTSAX consist of the following.



- Apple Inc. with 442,969,284 shares and about the market value of $78,658,055,760.

- Microsoft Corp. with 213,382,662 shares and the market value of $71,764,856,884

- Amazon.com Inc. with 12,251,420 shares and the market value of $40,850,399,763

- Alphabet Inc. Class A with 8,547,474 shares and the market value of $24,762,374,077

- Tesla Inc. with 22,833,680 shares and the market value of $24,130,176,350

- Facebook Inc. Class A with 67,251,688 shares and the market value of $22,620,105,259

- Alphabet Inc. Class C with 7,677,584 shares and the market value of $22,215,780,287

- NVIDIA Corp. with 67,499,669 shares and the market value of $19,852,327,650

- Berkshire Hathaway Inc. Class B with 48,225,937 shares and the market value of $14,419,555,163

- UnitedHealth Group Inc. with 26,768,259 shares and the market value of $13,441,413,574

- JPMorgan Chase & Co. with 83,988,235 shares and the market value of $13,299,537,012

- Johnson & Johnson with 74,819,509 shares and the market value of $12,799,373,405

- Home Depot Inc. with 29,677,684 shares and the market value of $12,316,535,637

- Procter & Gamble Co. with 68,774,496 shares and the market value of $11,250,132,056

- Visa Inc. Class A with 47,229,793 shares and the market value of $10,235,168,441

- Pfizer Inc. with 159,524,035 shares and the market values of $9,419,894,267

- Mastercard Inc. Class A with 24,931,683 shares and the market value of $8,958,452,336

- Bank of America Corp. with 197,709,410 and the market value of $8,796,091,651

- Walt Disney Co. with 51,659,466 shares and the market value of $8,001,534,689

- Accenture plc Class A with 18,664,148 shares and the market value of $7,737,222,553

- Adobe Inc. with 13,522,501 shares and the market value of $7,668,069,417

- Netflix Inc. with 12,588,931 shares and the market value of $7,584,075,592

- Thermo Fisher Scientific Inc. with 11,199,012 shares and the market value of $7,472,428,767

- Broadcom Inc. with 11,113,202 and the market value of $7,394,835,743

- Exxon Mobil Corp. with 120,319,130 and the market value of $7,362,327,565

- Costco Wholesale Corp. with 12,557,012 and the market value of $7,128,615,712

- Abbott Laboratories with 50,255,433 shares and the market value of $7,072,949,640

- Cisco Systems Inc./Delaware with 107,877,184 shares and the market value of $6,836,177,150

- PepsiCo Inc. with 39,294,953 shares and the market value of $6,825,926,286

- AbbVie Inc. with 50,244,447 shares and the market value of $6,803,098,124

- Eli Lilly & Co. with 24,468,610 shares and the market value of $6,758,719,454

- salesforce.com Inc. with 26,432,252 shares and the market value of $6,717,228,201

- Coca-Cola Co. with 110,482,879 shares and the market value of $6,541,691,266

- Comcast Corp. Class A with 129,584,186 shares and the market value of $6,521,972,081

- Chevron Corp. with 54,784,484 shares and the market value of $6,428,959,197

- PayPal Holdings Inc. with 33,392,235 shares and the market value of $6,297,107,676

- NIKE Inc. Class B with 36,315,359 shares and the market value of $6,052,680,885

- Danaher Corp. with 18,278,949 shares and the market shares of $6,013,957,010

- Intel Corp. with 115,586,332 shares and the market value of $5,952,696,098

- QUALCOMM Inc. with 31,831,280 shares and the market value of $5,820,986,174

- Walmart Inc. with 39,624,211 shares and the market value of $5,733,227,090

- McDonald's Corp. with 21,236,707 shares and the market value of $5,692,924,045

- Verizon Communications Inc. with 107,366,928 shares and the market value of $5,578,785,579

- Merck & Co. Inc. with 71,790,103 shares and the market value of $5,501,993,494

- Wells Fargo & Co. with 113,321,790 shares and the market value of $5,437,179,484

- NextEra Energy Inc. with 55,764,274 shares and the market value of $5,206,152,621

- Intuit Inc. with 8,047,618 shares and the market value of $5,176,388,850

- Linde plc with 14,543,767 shares and the market value of $5,038,397,202

- AT&T Inc. with 202,950,408 shares and the market value of $4,992,580,037

- Lowe's Cos. Inc. with 19,148,036 shares and the market value of $4,949,384,345

- Texas Instruments Inc. with 26,246,724 shares and the market value of $4,946,720,072

- Advanced Micro Devices Inc. with 34,321,894 shares and the market value of $4,938,920,547

- Union Pacific Corp. with 18,270,664 shares and the market value of $4,602,928,382

- United Parcel Service Inc. Class B with 20,722,276 and the market value of $4,441,612,638

- Philip Morris International Inc. with 44,245,226 shares and the market value of $4,203,296,470

- Honeywell International Inc. with 19,564,783 shares and the market value of $4,079,452,903

- Oracle Corp. with 46,616,042 shares and the market value of $4,065,385,023

- Applied Materials Inc. with 25,662,203 shares and the market value of $4,038,204,264

- Morgan Stanley with 40,798,842 shares and the market value of $4,004,814,331

- Medtronic plc with 38,220,866 shares and the market value of $3,953,948,588

- Bristol-Myers Squibb Co. with 63,083,990 shares and the market value of $3,933,286,777

- Starbucks Corp. with 33,341,115 shares and the market value of $3,899,910,222

- CVS Health Corp. with 37,517,401 shares and the market value of $3,870,295,087

- American Tower Corp. with 12,942,885 shares and the market value of $3,785,793,863

- Charles Schwab Corp. with 43,757,082 shares and the market value of $3,679,970,596

- ServiceNow Inc. with 5,655,685 shares and the market value of $3,671,161,690

- Raytheon Technologies Corp. with 42,537,683 shares and the market value of $3,660,792,999

- Intuitive Surgical Inc. with 10,152,895 shares and the market value of $3,647,935,174

- Goldman Sachs Group Inc. with 9,533,979 shares and the market value of $3,647,223,666

- Amgen Inc. with 16,008,641 shares and the market value of $3,601,463,966

- BlackRock Inc. with 3,885,635 and the market value of $3,557,531,981

- Prologis Inc. with 21,022,435 shares and the market value of $3,539,337,157

- International Business Machines Corp. with 25,486,833 shares and the market value of $3,406,570,099

- Citigroup Inc. with 56,391,721 and the market value of $3,405,496,031

- Boeing Co. with 16,703,485 shares and the market value of $3,362,745,600

- Zoetis Inc. with 13,446,588 shares and the market value of $3,281,370,870

- S&P Global Inc. with 6,849,223 shares and the market value of $3,232,353,810

- Anthem Inc. with 6,898,478 shares and the market value of $3,197,720,492

- Caterpillar Inc. with 15,374,036 and the market value of $3,178,428,203

- Target Corp. with 13,616,463 shares and the market value of $3,151,394,197

- Micron Technology Inc. with 31,792,741 shares and the market value of $2,961,493,824

- Automatic Data Processing Inc. with 11,975,413 shares and the market value of $2,952,897,338

- General Electric Co. with 31,211,377 shares and the market value of $2,948,538,785

- 3M Co. with 16,376,884 shares and the market value of $2,909,025,905

- Lam Research Corp. with 4,001,637 and the market value of $2,877,777,249

- Booking Holdings Inc. with 1,166,961 shares and the market value of $2,799,807,840

- Deere & Co. with 7,931,030 shares and the market value of $2,719,470,877

- ConocoPhillips with 37,485,339 shares and the market value of $2,705,691,769

- American Express Co. with 16,510,377 shares and the market value of $2,701,097,677

- Analog Devices Inc. with 15,273,478 shares and the market value of $2,684,619,228

- Mondelez International Inc. Class A with 39,640,610 shares and the market value of $2,628,568,849

- Snowflake Inc. Class A with 7,696,609 shares and the market value of $2,607,226,299

- Gilead Sciences Inc. with 35,651,267 and the market value of $2,588,638,497

- Stryker Corp. with 9,648,803 shares and the market value of $2,580,282,898

- Crown Castle International Corp. with 12,282,528 shares and the market value of $2,563,854,895

- Blackstone Group LP Class A with 19,521,962 shares and the market value of $2,525,946,663

- Marsh & McLennan Cos. Inc. with 14,348,153 shares and the market value of $2,493,995,954

- Moderna Inc. with 9,794,908 shares and the market value of $2,487,710,734

- Altria Group Inc. with 52,205,320 shares and the market value of $2,474,010,115

- TJX Cos. Inc. with 32,467,240 shares and the market value of $2,464,912,861

What companies are in VTSAX?

The companies in VTSAX are 4109 and the following are the first 100:



- Apple Inc.

- Microsoft Corp.

- Amazon.com Inc.

- Alphabet Inc. Class A

- Tesla Inc.

- Facebook Inc. Class A

- Alphabet Inc. Class C

- NVIDIA Corp.

- Berkshire Hathaway Inc. Class B

- UnitedHealth Group Inc.

- JPMorgan Chase & Co.

- Johnson & Johnson

- Home Depot Inc.

- Procter & Gamble Co.

- Visa Inc. Class A

- Pfizer Inc.

- Mastercard Inc. Class A

- Bank of America Corp.

- Walt Disney Co.

- Accenture plc Class A

- Adobe Inc.

- Netflix Inc.

- Thermo Fisher Scientific Inc.

- Broadcom Inc.

- Exxon Mobil Corp.

- Costco Wholesale Corp.

- Abbott Laboratories

- Cisco Systems Inc./Delaware

- PepsiCo Inc.

- AbbVie Inc.

- Eli Lilly & Co.

- salesforce.com Inc.

- Coca-Cola Co.

- Comcast Corp. Class A

- Chevron Corp.

- PayPal Holdings Inc.

- NIKE Inc. Class B

- Danaher Corp.

- Intel Corp.

- QUALCOMM Inc.

- Walmart Inc.

- McDonald's Corp.

- Verizon Communications Inc.

- Merck & Co. Inc.

- Wells Fargo & Co.

- NextEra Energy Inc.

- Intuit Inc.

- Linde plc

- AT&T Inc.

- Lowe's Cos. Inc.

- Texas Instruments Inc.

- Advanced Micro Devices Inc.

- Union Pacific Corp.

- United Parcel Service Inc. Class B

- Philip Morris International Inc.

- Honeywell International Inc.

- Oracle Corp.

- Applied Materials Inc.

- Morgan Stanley

- Medtronic plc

- Bristol-Myers Squibb Co.

- Starbucks Corp.

- CVS Health Corp.

- American Tower Corp.

- Charles Schwab Corp.

- ServiceNow Inc.

- Raytheon Technologies Corp.

- Intuitive Surgical Inc.

- Goldman Sachs Group Inc.

- Amgen Inc.

- BlackRock Inc.

- Prologis Inc.

- International Business Machines Corp.

- Citigroup Inc.

- Boeing Co.

- Zoetis Inc.

- S&P Global Inc.

- Anthem Inc.

- Caterpillar Inc.

- Target Corp.

- Micron Technology Inc.

- Automatic Data Processing Inc.

- General Electric Co.

- 3M Co.

- Lam Research Corp.

- Booking Holdings Inc.

- Deere & Co.

- ConocoPhillips

- American Express Co.

- Analog Devices Inc.

- Mondelez International Inc. Class A

- Snowflake Inc. Class A

- Gilead Sciences Inc.

- Stryker Corp.

- Crown Castle International Corp.

- Blackstone Group LP Class A

- Marsh & McLennan Cos. Inc.

- Moderna Inc.

- Altria Group Inc.

- TJX Cos. Inc.

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How much Dividend does VTSAX pay?

The amount of dividends paid under VTSAX often varies with time. The dividend yield in VTSAX is determined by dividing the sum of the company’s annual dividends per share by the current price share.



As of February 11th, 2022, the VTSAX dividend is valued at 1.30%. This amount may likely change over time.

What's the Difference between VTSAX vs VTI?

Since you have learned about the benefits of VTSAX and VTI, you should also learn their differences to help you conclude your investment decisions. If you want to make wise investments and succeed with your great plans, you must pay attention to every close detail to see how to increase your chances of attaining success.



So what’s the difference between VTSAX vs VTI and which one should you pick? The following comparison will help you decide on how to proceed with your investments.

VTSAX exists as an Index Fund, but VTI is an ETF

One of the common differences between these two stock options is that VTSAX is an index fund, while VTI exists as an Exchange Traded Fund. Under VTSAX, an investor can decide to invest in a particular list of securities.



However, the investors have to make certain considerations before proceeding with this investment decision. An example of this list of securities includes stocks of S&P 500 listed companies.



Under VTI, the exchange-traded fund involves shares sold on an exchange, a basket of securities, and other numerous benefits which the investors can gain from. Unlike VTSAX’s index fund, ETFs shared are often traded for a whole day at prices that alter depending on the demand and supply chain.



As an investor, you must decide on these stock options depending on your intention and your investment goals.

VTSAX has a Minimum investment cost, while VTI doesn’t

VTSAX has a minimum investment of $3000. This implies that you must be financially buoyant to get started with investing in this stock option. $3,000 may not appear like a huge investment cost to the rich or high middle class, however, it is a big deal to investors with a smaller budget.



When you cannot afford $3,000 to invest in VTSAX, you may consider going for VTI. So what is the minimum investment cost for VTI? Unlike VTSAX, VTI has no minimum investment cost.



Once you are willing to invest, you can get started with any amount. Since VTI does not have a limitation to minimum investment, smart investors with a smaller budget can embrace the stock market through this option and find their stand with time.



But if you have the money, you may consider going for VTSAX. According to several sources, VTSAX has been in existence for more than 20 years and has made over 232% of total returns to investors. Hence, if you are highly impressed by this performance analysis, you should consider VTSAX.



VTI is still a good choice to put into consideration. Hence, if you are considering the minimum investment cost before concluding, VTI should be your choice of investment.

VTSAX Tax-cost ratio is greater than VTI’s





The tax cost ratio is the amount of return made on an investment lowered by the taxes paid by the investors on distributions. These distributions include capital gains, stock, and bond dividends.



Hence, the tax cost ratio is what determines the tax effectiveness of each investment option. The tax-cost ratio of VTSAX is estimated to be 0.70%, while the tax-cost ratio of VTI is 0.49%.



Comparing the tax-cost ratios of both options, you will realize that the VTSAX has 0.21 percent more post-tax returns than the VTI. From this estimation, you can observe that the VTI is more tax-effective than the VTSAX.



As a smart investor, you should put the tax-cost ratio into consideration before making any investment decision. When you pay more tax while making your investment, your chances of profiting from such an investment decision will be reduced drastically.



Hence, you must be watchful to ensure that you are on the safer side while making your investment decisions. Hence, if you are considering a task, VTI should be your choice of stock investment.

Automatic Investments and Withdrawals

Another top important factor you should consider in stock investment is your ability to invest automatically and make a withdrawal without stress. Automatic investments have become a top trend in stock investments today.



Investors have taken advantage of this new opportunity to reach a greater milestone in their stock investment. But why is automatic investment important?



Unlike other investment options, automatic investment helps to cover the loopholes of manual investments. It makes the process easier and helps investors to earn more money from their investments.
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