Vanguard 500 Index Fund vs ETF?

Question

What is the equivalent to the Vanguard 500 Index Fund ?
Is it the Vanguard Total Stock Market ETF (VTI)?
Is the total stock market the same as s&p 500?

Answer 1

No, the total stock market ETF includes small and mid-cap stocks. The Vanguard 500 index fund tracks the S&P 500, which is all large cap stocks.

The ETF that tracks the S&P 500 is IVV from iShares.

The closest equivalent from Vanguard is the VV, which tracks 750 large cap stocks.

Answer 2

you're lacking that the known concept-approximately an familiar isn't in basic terms right while it is composed of investments that compound, that's the geometric propose that counts. as an occasion if a fund did a million%, 5% and 24% over 3 years then the final might 9.fifty six% per 365 days no longer 10%. that is because of the fact a $one hundred invested in the 1st 365 days might grow to be $one hundred * a million.01 or $a hundred and one for the 2nd 365 days which might then grow to be $one hundred * a million.01 * a million.05 or $106.05 for the 0.33 365 days and be $one hundred * a million.01 * a million.05 * a million.24 or 131.50 on the tip of the three years and the 0.33 root of a million.01*a million.05*a million.24 is a million.0956 for this reason a 9.fifty six% per annum familiar. a geometrical propose penalizes a unfavorable effect plenty extra heavily than an arithmetic familiar. That trouncing could in basic terms be in the numbers and could no longer actual be a trouncing once you're taking a seem on the surely outcomes or the geometric propose. i think of that the two VFINX and VTSMX are showing comparable overall performance, the version because inception is with the help of VFINX having been around plenty longer. VFINX does seem to instruct ever so somewhat much less volatility than VTSMX so i does no longer project with changing over, you're getting a wide exposure to the marketplace with the two money and there extremely is not any reason of one to do severely extra useful than the different. in case you probably did could make somewhat extra then get margin on your account and purchase some call recommendations no longer on margin yet utilising the margin secured by utilising the fairness of your money to exercising the recommendations while they're in the money, allowing them to expire valueless while they are not. you're growing to be to be the income of making an investment in as much as the cost of your mutual money in shares yet in basic terms risking the cost of the recommendations. If performed on a rotating foundation, say one 365 days call recommendations each and each month in a distinctive decision of high quality companies chosen on a cost foundation then you definately would be if truth be told making an investment in as much as twelve situations what you're able to arise with the money for with the cost of the mutual fund mutually as risking in basic terms the cost of the recommendations. you will in reality be making an investment your cash in the fund twelve situations for only the cost of the recommendations yet without the potential of dropping your investment.