SWTSX vs VTSAX Fund Comparison

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

Group Created with Sketch.

Minafi's Take on SWTSX vs VTSAX

Here's an in depth look at the differences between Schwab Total Stock Market Index Fund® ($SWTSX) and Vanguard Total Stock Market Index Fund Admiral Shares ($VTSAX).

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.

95% FI Score
  • swtsx
  • Mutual Fund
  • US Stocks
  • Large Blend

Schwab Total Stock Market Index Fund®

Expenses: 0.03% (Better than 1% of similar funds)

This is a great choice for a Large Blend US Stocks fund. See why »

98% FI Score
  • vtsax
  • Mutual Fund
  • US Stocks
  • Large Blend

Vanguard Total Stock Market Index Fund Admiral Shares

Expenses: 0.04% (Better than 1% of similar funds)

This is a great choice for a Large Blend US Stocks fund. See why »

Both $SWTSX and $VTSAX are categorized as Mutual Funds. Mutual funds are often offered by 401(k) platforms and are essentially the same as ETFs. Mutual funds are generally offered by an investment platform – Fidelity has Fidelity mutual funds, Vanguard has Vanguard mutual funds. Mutual funds are ideal for retirement investing since you can invest any amount. That allows you to invest every last cent and benefit from the market.

The biggest disadvantage of mutual funds is that you're usually limited to the funds on your investment platform. If you're investing on Fidelity, you'll want to pick Fidelity mutual funds (or any ETF). Same with Vanguard. Some platforms offer mutual funds from other platforms, but they may charge a purchse or redemption fee. I'd recommend using the same platform as your funds – or stick to ETFs.

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

Both of these funds are US Stocks Large Blend funds – which means they're likely both investing in about the same investments behind the scenes.

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.

SWTSX VTSAX
Market Score 9.1 /10 10.0 /10
Category Score 10.0 /10 10.0 /10
Total 19.1 20.0

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: tie

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, SWTSX has an expense ratio of 0.03% while VTSAX has an expense ratio of 0.04%. In this case, both of these funds have a similar fee.

Winner: $SWTSX (barely)

Fund Size Comparison

Both SWTSX and VTSAX have a similar number of assets under management. SWTSX has 10.6 Billion in assets under management, while VTSAX has 872 Billion.

Minafi categorizes both of these funds as large funds. Fund size 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.

Winner: tie

Which Should You Choose? SWTSX or VTSAX?

Since both of these funds are US Stocks Large Blend funds, you'll most likely only need to invest in one of these funds – not both. Running both of these funds through Minafi's FI Score algorithm, gives SWTSX a score of 95 and VTSAX a score of 98.

Since both of these have a similar FI Score, the difference between these two if minimal. A higher FI Score doesn't mean future growth will be higher, but it does mean that it better fits criteria for a good fund. Honestly though, these two aren't far off. They're both excellent funds.

Winner: tie

$SWTSX

Schwab Total Stock Market Index Fund®

95

Read More
Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 9 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jun-1-1999
Exchange NMFQS
Expense Ratio 0.030%
Net Assets 10.6 Billion
Yield 1.78%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.29%
  • Communication Services 10.05%
  • Consumer Cyclical 10.57%
  • Consumer Defensive 7.10%
  • Energy 2.85%
  • Financial Services 13.63%
  • Healthcare 15.63%
  • Industrials 8.87%
  • Real Estate 3.91%
  • Technology 21.95%
  • Utilities 3.15%
Regions
  • Asia Developed 0.05%
  • Asia Emerging 0.09%
  • Europe Developed 0.45%
  • Europe Emerging 0.01%
  • Latin America 0.03%
  • North America 98.80%
  • United Kingdom 0.57%

$VTSAX

Vanguard Total Stock Market Index Fund Admiral Shares

98

Read More
Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 10 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Apr-27-1992
Exchange NMFQS
Expense Ratio 0.040%
Net Assets 872 Billion
Yield 1.84%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.33%
  • Communication Services 10.07%
  • Consumer Cyclical 11.07%
  • Consumer Defensive 6.75%
  • Energy 2.63%
  • Financial Services 12.97%
  • Healthcare 15.05%
  • Industrials 8.99%
  • Real Estate 3.86%
  • Technology 23.33%
  • Utilities 2.95%
Regions
  • Asia Developed 0.04%
  • Asia Emerging 0.10%
  • Europe Developed 0.21%
  • Latin America 0.02%
  • North America 99.13%
  • United Kingdom 0.50%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2021   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs up duo