Side-by-Side Comparison
| Metric | VFIAX | VTSAX |
|---|---|---|
| Type | Mutual Fund | Mutual Fund |
| Expense Ratio | 4.00% | 4.00% |
| Holdings | 504 | 3,645 |
| Dividend Yield | 1.24% | 1.28% |
| Min Investment | $3,000 | $3,000 |
| Inception | 2000-11-13 | 2000-11-13 |
| Index Tracked | S&P 500 Index | CRSP US Total Market Index |
| AUM | $531B | $369B |
Fund data last updated: 2025-01-02. Expense ratios, holdings, and yields may change. Always verify with official sources.
Key Differences
- •VFIAX holds ~500 stocks (S&P 500); VTSAX holds ~3,600 (total market)
- •Both have identical 0.04% expense ratios and $3,000 minimums
- •VTSAX includes small and mid-cap stocks; VFIAX is large-cap only
- •Historical performance is nearly identical due to market-cap weighting
Which Should You Choose?
Taxable Brokerage Account
Both are excellent. VTSAX offers slightly more diversification; VFIAX has slightly more focus on established companies.
IRA (Traditional or Roth)
VTSAX is JL Collins' specific recommendation. VFIAX is also excellent if you prefer S&P 500 exposure only.
401(k)
Use whichever your plan offers. If both are available, VTSAX for total market exposure.
JL Collins' Recommendation
JL Collins specifically recommends VTSAX throughout his book. He says: 'VTSAX gives you the entire U.S. stock market, large, mid, small, and micro-cap stocks. One fund that owns them all.'
Frequently Asked Questions
Which is better: VFIAX or VTSAX?
Both are excellent with identical expense ratios. VTSAX is slightly more diversified (includes small/mid-caps). JL Collins recommends VTSAX. However, the practical difference is minimal—pick one and stick with it.
Why does JL Collins prefer VTSAX over VFIAX?
Collins believes in owning 'the whole haystack' rather than trying to pick segments. With VTSAX, you own all publicly traded U.S. companies—no decision about which market segment will outperform.
Do small-caps in VTSAX improve returns?
Historically, small-caps have outperformed in some periods but underperformed in others. The 'small-cap premium' exists but is inconsistent. VTSAX's small-cap exposure is primarily about diversification, not expected outperformance.
Can I hold both VFIAX and VTSAX?
You can, but there's significant overlap—VFIAX's holdings are all included in VTSAX. For simplicity, JL Collins recommends choosing one fund (VTSAX) and staying the course.
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