Hi! I’m 28 years old and just created a ROTH IRA with Vanguard for the first time ever. I transferred $6,000 over and am ready to invest. Which fund should I invest my $6,000 in? I’m getting mixed messages from friends of doing VTSAX but maybe do international funds too because VTSAX isn’t too hot right now! Please advise!
1 Like
Thank you for providing this information, it is really helpful!
VTSAX has .04% fees
VTTSX has .15% fees
Do the fees matter? I believe if my math is correct, it should only be a couple hundred bucks?
Also, the average return on VTSAX is ~13% and VTTSX is ~8%. Should I take that into consideration?
The fees are both so close to zero it’s really not a big deal in my opinion. Plus VTTSX includes more expensive stuff to manage, like international and bonds.
Yes, that’s true VTSAX has outperformed VTTSX in the recent past. That’s because VTSAX is 100% US stocks which have done really well, while VTTSX has MOSTLY US stocks, but also has international stocks and bonds which haven’t done as well in the past.
It’s nice to know what’s happened in the past, but what we really care about is what’s going to happen in the FUTURE. Will US stocks go down and international stocks go up? Will both stock markets go down and bonds will provide better returns? I have no idea. Nobody does. But if you diversify across the global stock and bond markets you guarantee your fair share of all market growth! That’s the strategy I like!
1 Like
Does VTTSX give dividends like VTSAX?
Yes because it contains the same stocks plus more. Remember to set up your account so it automatically reinvests dividends! At least I do so more money can grow.