I currently have just under $10,000 in a Vanguard Roth IRA brokerage account. So far I have purchased VOO ETFs since they have a lower expense ratio than VFINX. My next contribution will put me over $10,000 allowing me to purchase VFIAX. I am trying to decide whether it is worth it to convert over my VOO shares to VFAIX shares. My thoughts so far:
Both have exactly the same expense ratio 0.04% and should have almost exactly the same performance since they track the same index.
- Already purchased/selling could be taxed (not sure if this applies with Roth IRA)
- No automatic investment
- Have to buy whole shares (some dollar amount left over)
- Trading fees and commissions (not applicable since trading Vanguard ETFs is free with Vanguard account)
- Possibly risky due to liquidation (unlikely with ETF as big as VOO)
- Automatic investment
- Can invest all of my money (don't have to buy whole shares)
- Possibly tax considerations (not sure if this applies with Roth IRA)
Are there any other major considerations I have left out? Also, are my assumptions in the list correct?