VTSAX Vs. VFIAX: Which One Is Better?


Before investing, many investors and traders conduct the needed due diligence. A sound investment strategy includes diversification of your asset classes to manage risks and maximize profits.

Let’s find out the similarities, differences, and which index fund is better -  VTSAX  vs. VFIAX.

VTSAX has been averaging the benchmark, the CRSP US Total Market Index.

VFIAX seeks to replicate its benchmark index of comparing the returns on investment and only focuses on the top 500 companies in the US.

The VFIAX is more suitable for investors who are either moderately or highly risk-tolerant and seeking low-cost exposure to the  stock market.

The VTSAX is a good choice for core equity-holding investors who want to focus on the long-term investment horizon and love the lower risk associated with the large-capitalization  equity market.

Both of them have an incredibly low expense ratio of 0.04%.