Before investing, it’s best to know your options to have a good investment strategy and not waste your money saved from years of working.
We will be comparing two passively-managed, renowned technology funds from Vanguard: VGT and VITAX.
VGT and VITAX are technology funds offered by the Vanguard Group. However, while VGT is an exchange-traded fund, VITAX is a mutual fund.
VGT and VITAX track the performance of the MSCI US Investable Market Information Technology Index.
It implies that being an ETF, VGT fluctuates and is traded throughout the day. On the other hand, VITAX, a mutual fund, is traded only once a day.
VGT and VITAX have a low expense ratio of 0.1%. However, in terms of minimum investments, VGT is pegged at one share, while VITAX requires an initial $100,000 if you want to invest.
At the end of the day, your decision should be based on your portfolio preferences, investment objective and strategy, and financial goals.