GEM vs VTAIX Fund Comparison

A comparison between GEM and VTAIX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

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Minafi's Take on GEM vs VTAIX

Here's an in depth look at the differences between Goldman Sachs ActiveBeta Emerging Markets Equity ETF ($GEM) and Virtus Tactical Allocation Fund Class I ($VTAIX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

72% FI Score
  • gem
  • ETF
  • International Stocks
  • Emerging Markets

Goldman Sachs ActiveBeta Emerging Markets Equity ETF

Expenses: 0.45% (Better than 1% of similar funds)

This is an OK choice for a Emerging Markets International Stocks fund. See why »

42% FI Score
  • vtaix
  • Mutual Fund
  • Allocation
  • All-In-One

Virtus Tactical Allocation Fund Class I

Expenses: 0.88% (Better than 1% of similar funds)

This is a bad choice for a All-In-One Allocation fund. See why »

$GEM is classified as an ETF while $VTAIX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

GEM VTAIX
Market Score 7.7 /10 5.4 /10
Category Score 5.0 /10 5.0 /10
Total 12.7 10.4

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $GEM

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, GEM has an expense ratio of 0.45% while VTAIX has an expense ratio of 0.88%.

Winner: $GEM

Fund Size Comparison

One place these two funds differ is in their total assets under management. This is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

In the case of these two funds, GEM is a large fund with 1.6 Billion in assets under management. VTAIX, on the other hand, is a medium fund with 633 Million in assets under management.

Winner: $GEM, Goldman Sachs ActiveBeta Emerging Markets Equity ETF

Which Should You Choose? GEM or VTAIX?

Comparing these two funds isn't an apples to apples comparison. GEM is a International Stocks Emerging Markets fund, while VTAIX is a Allocation All-In-One fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives GEM a score of 72 and VTAIX a score of 42.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$GEM

Goldman Sachs ActiveBeta Emerging Markets Equity ETF

72

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Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 9 /10
Expense Rating 6 /10
Market Score 8 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date Sep-25-2015
Exchange NYSE ARCA
Expense Ratio 0.450%
Net Assets 1.6 Billion
Yield 3.07%
Holdings
Description Info
Market International Stocks
Category Emerging Markets
Sectors
  • Basic Materials 5.10%
  • Communication Services 14.27%
  • Consumer Cyclicals 14.53%
  • Consumer Defensive 11.64%
  • Energy 5.08%
  • Financial Services 20.13%
  • Healthcare 4.15%
  • Industrials 2.57%
  • Real Estate 1.08%
  • Technology 18.26%
  • Utilities 3.18%
Regions
  • Africa/Middle East 7.88%
  • Asia Developed 29.04%
  • Asia Emerging 46.58%
  • Europe Developed 0.40%
  • Europe Emerging 6.14%
  • Latin America 9.79%
  • North America 0.17%

$VTAIX

Virtus Tactical Allocation Fund Class I

42

Read More
Ratings
Rating Type Rating
Expense Ratio Score 5 /10
Expense Rating 1 /10
Market Score 5 /10
Category Score 5 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Sep-6-1940
Exchange NMFQS
Expense Ratio 0.880%
Net Assets 633 Million
Yield 1.26%
Holdings
Description Info
Market Allocation
Category All-In-One
Sectors
  • Basic Materials 2.44%
  • Communication Services 17.42%
  • Consumer Cyclical 23.26%
  • Consumer Defensive 5.27%
  • Energy 0.23%
  • Financial Services 11.64%
  • Healthcare 6.11%
  • Industrials 8.65%
  • Real Estate 2.03%
  • Technology 22.95%
  • Utilities 0.00%
Regions
  • Asia Developed 1.53%
  • Asia Emerging 9.40%
  • Australasia 0.23%
  • Europe Developed 7.89%
  • Europe Emerging 1.36%
  • Japan 0.89%
  • Latin America 1.79%
  • North America 72.56%
  • United Kingdom 4.35%

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