VIGAX vs VTMGX Fund Comparison

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

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Minafi's Take on VIGAX vs VTMGX

Here's an in depth look at the differences between Vanguard Growth Index Fund Admiral Shares ($VIGAX) and Vanguard Developed Markets Index Fund Admiral Shares ($VTMGX).

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
  • vigax
  • Mutual Fund
  • US Stocks
  • Large Growth

Vanguard Growth Index Fund Admiral Shares

Expenses: 0.05% (Better than 1% of similar funds)

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

96% FI Score
  • vtmgx
  • Mutual Fund
  • International Stocks
  • Large Blend

Vanguard Developed Markets Index Fund Admiral Shares

Expenses: 0.07% (Better than 1% of similar funds)

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

Both $VIGAX and $VTMGX 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

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.

Market Score 9.9 /10 9.8 /10
Category Score 8.0 /10 10.0 /10
Total 17.9 19.8

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: $VTMGX

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, VIGAX has an expense ratio of 0.05% while VTMGX has an expense ratio of 0.07%. In this case, both of these funds have a similar fee.

Winner: $VIGAX (barely)

Fund Size Comparison

Both VIGAX and VTMGX have a similar number of assets under management. VIGAX has 112 Billion in assets under management, while VTMGX has 110 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? VIGAX or VTMGX?

Comparing these two funds isn't an apples to apples comparison. VIGAX is a US Stocks Large Growth fund, while VTMGX is a International Stocks Large Blend 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 VIGAX a score of 95 and VTMGX a score of 96.

Winner: tie


Vanguard Growth Index Fund Admiral Shares


Read More
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 10 /10
Category Score 8 /10
Overview Details
Fund Type Mutual Fund
Inception Date Nov-2-1992
Exchange NMFQS
Expense Ratio 0.050%
Net Assets 112 Billion
Yield 0.87%
Description Info
Market US Stocks
Category Large Growth
  • Basic Materials 1.92%
  • Communication Services 14.58%
  • Consumer Cyclical 17.02%
  • Consumer Defensive 3.18%
  • Energy 0.75%
  • Financial Services 8.79%
  • Healthcare 8.83%
  • Industrials 6.72%
  • Real Estate 4.62%
  • Technology 33.56%
  • Utilities 0.03%
  • North America 99.27%
  • United Kingdom 0.73%


Vanguard Developed Markets Index Fund Admiral Shares


Read More
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 10 /10
Category Score 10 /10
Overview Details
Fund Type Mutual Fund
Inception Date Aug-17-1999
Exchange NMFQS
Expense Ratio 0.070%
Net Assets 110 Billion
Yield 3.41%
Description Info
Market International Stocks
Category Large Blend
  • Basic Materials 7.83%
  • Communication Services 5.99%
  • Consumer Cyclical 9.65%
  • Consumer Defensive 10.95%
  • Energy 4.58%
  • Financial Services 16.14%
  • Healthcare 12.72%
  • Industrials 14.76%
  • Real Estate 3.68%
  • Technology 10.01%
  • Utilities 3.71%
  • Africa/Middle East 0.56%
  • Asia Developed 8.37%
  • Asia Emerging 0.39%
  • Australasia 5.88%
  • Europe Developed 38.73%
  • Europe Emerging 0.56%
  • Japan 23.19%
  • Latin America 0.01%
  • North America 9.40%
  • United Kingdom 12.91%

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