Hello! May be an amateur question but is having both VFIAX and VTSAX considered a duplication given majority of the holdings in VFIAX are also within VTSAX? Any insight would be appreciated. Thanks!
Hi SpringForward,
Not an amateur question! VFIAX tracks the S&P 500, consisting of ~500 stocks. VTSAX tracks the entire US stock market, consisting of ~4000 stocks, of which contains all of the ~500 stocks found in VFIAX. I wouldn’t consider it a duplication, but it is somewhat redundant. Hope that helps!
Thanks so much vivitron!
If one were to exchange all of their VFIAX funds for VTSAX, would that be associated with a tax charge? Appreciate your insight!
It depends on what kind of account it’s in. If it’s in a tax-advantaged account like a Roth IRA, there will be no taxable event. If it’s in a taxable brokerage account, there will be, so I would take that into consideration, especially if you owned the shares for less than a year!!
Got it; thanks so much for the assist here! Love this website and forum!!
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Awwww, no problem, I’m glad! 