VOO vs. VFIAX for longer term investment? I’m not DCA into them, using quarterly bonuses to buy in so is one really any better than the other for any specific reason?

likehelpful
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Quarterly investment is still DCA. Just a larger period between investments.

likesmart

I’d rather buy in as an ETF just wanted to make sure there was no reason I was missing in which one was better than the other. Thanks for the input.

like

I think the way vanguard structures their funds the etf is just a different share class of the mutual fund.

I think VOO had a slightly smaller expense ratio at .03% vs VFIAX at .04% which could add up overtime.

helpful

True, that will cost you an extra $100 for every million you have invested.

likefunnyupliftingsmart

They are the exact same thing. Do you want an etf or a mutual fund?

What kind of account are you buying in? Typically ETFs are recommended in taxable brokerage accounts and mutual funds are recommended in IRAs

Yes good point. Heartbeat trades are an interesting read if you have time!

likesmart

I prefer VFIAX because ETFs have dividend reinvestment drag

You can but the reinvestment process itself is inferior to mutual funds:

https://www.etf.com/sections/blog/23595-your-etf-has-drip-drag.html?nopaging=1

I don’t think it really matters if you’re DCA-ing over the long term though.

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