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38 votes
Accepted

What is the difference between these two S&P 500 ETF?

One is priced in US dollars and the other is priced in euro. The euro has appreciated against the US dollar over the past three years, hence the lower return in euro than in dollars.
Mike Scott's user avatar
  • 23.5k
35 votes
Accepted

Why there is difference between performance of Vanguard S&P500 (VUSA) and S&P500 index

You're comparing an index that is measured in USD versus an ETF that tracks that index but is paid in GBP. The difference is mostly the difference in exchange rate over time between USD and GBP.
D Stanley's user avatar
  • 137k
32 votes
Accepted

What does "not funded by you" mean in Vanguard's college savings planner?

One of the items on the left hand side is "% of cost you plan to cover" which you've set to 50%. So you're expecting that half the cost will be covered by someone else. That's the "...
Justin Cave's user avatar
  • 27.3k
18 votes

Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?

Because funds of different share classes are there to cater different account sizes. The actual equivalent of VTI is Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) if account size is &...
base64's user avatar
  • 10.5k
17 votes

What is the difference between these two S&P 500 ETF?

I understand that they are different financial products, exchanged on different markets with different currencies. You're right, that's the difference. One is VOO, the other is VOO priced in euros ...
quid's user avatar
  • 49k
15 votes
Accepted

Understanding the past growth of an ETF

The currently accepted answer is incorrect. Vanguard is quoting the 1-year return as of 9/30/2019. This is calculated from the close of 9/28/2018 (the last trading day of September 2018) to the close ...
nanoman's user avatar
  • 30.1k
12 votes
Accepted

Why does Voya use Vanguard fund names with different prices and no ticker symbols?

This is an example of a Collective Investment Trust (a longer read from time.com). Voya operates a CIT that buys VFIAX, and you buy into the CIT. Why would Voya not just give you VFIAX directly? ...
Magua's user avatar
  • 5,097
12 votes
Accepted

Mutual fund historic prices, seen @ Google and Yahoo, don't match my activity

VFIAX closed at 421.39 on 12/20/2021 (both Google and Yahoo show this). I suspect that Vanguard filled your order on the 20th, not the 21st. It's possible that the funds were settled the next day - ...
D Stanley's user avatar
  • 137k
11 votes
Accepted

My first 401k, starting late-ish - should I stick with target date?

Vanguard starts to adjust the weightings at 25 years out, so you're certainly right that VTIVX will soon start to be a little less aggressive (in 2020). It's not going to go drastically conservative,...
Joe's user avatar
  • 35.8k
11 votes
Accepted

How can you know which index is tracked by a specific index fund?

This kind of information can always be found in the Key Information Document (KID) The KID states: The Fund seeks to provide returns consistent with the performance of the Bloomberg Barclays ...
Ger's user avatar
  • 318
10 votes
Accepted

How are Vanguard's ETF's returns higher than the index's growth?

Repost of comment as an answer (as per Chirlu's suggestion). The index does not take into account the dividends paid by the stocks in the index; the ETF does. So the ETF's return outperforms the ...
Dilip Sarwate's user avatar
10 votes
Accepted

Vanguard Target Year retirement funds track record

There are a couple of reasons why Dave Ramsey advises you to look at the 10-year performance of mutual funds. When comparing the past performance of different funds, you need to make sure that you are ...
Ben Miller's user avatar
  • 116k
10 votes

Why there is difference between performance of Vanguard S&P500 (VUSA) and S&P500 index

D Stanley is correct that the reason for the difference is the change in exchange rate. But your second chart is not of an index (nor are indexes measured in USD, rather in some "points"). You are ...
Ben Voigt's user avatar
  • 6,788
10 votes
Accepted

Invest in Vanguard Index Funds (from Germany)

Curious to know why is that? Generally each region in the world has it's own regulations and specific financial products. The VTSAX is an American product. You also can't buy it in Australia or even ...
s1lv3r's user avatar
  • 504
10 votes

Why is the expense ratio of an index fund sometimes higher than its equivalent ETF?

Adding onto base64's excellent answer, an ETF also avoids some of the liquidity costs incurred by open end funds. Since only authorized participants may trade shares directly with a fund, and only in ...
Matthew Vandergrift's user avatar
9 votes

What is the difference between these two S&P 500 ETF?

Very roughly, three years ago the exchange rate was 1USD=0.9EUR while now it is 1USD=0.8EUR. Let us use those and imagine ABC corp was trading three years ago at 100USD and has risen to 150USD today. ...
Ross Millikan's user avatar
9 votes
Accepted

Why buy mutual funds when equivalent ETFs exist?

A couple reasons I can think of: You can place orders for fractional shares of a mutual fund. With an ETF you can't, so you'll probably have uninvested cash. If you're uncomfortable entering orders ...
Craig W's user avatar
  • 15.9k
9 votes

Understanding the past growth of an ETF

Google's numbers: 10/01/18 $268.04 09/27/19 $271.26 That's a gain of 1.20% which is far less than the actual return because Google did not account for dividends. During that period you would have ...
Bob Baerker's user avatar
  • 76.7k
8 votes

Switching Roth IRA ( from American Funds to Vanguard)

You can have as many IRA accounts as you want (whether Roth or Traditional), so you can have a Roth IRA with American Funds and another Roth IRA with Vanguard if you like. One disadvantage of having ...
Dilip Sarwate's user avatar
8 votes
Accepted

Are the Vanguard Target Retirement Plans designed for when you turn 65, not for when you plan to retire?

No. It should reflect intended retirement year, not age. From Vanguard's website: The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire ...
yoozer8's user avatar
  • 9,513
8 votes

Can I circumvent the minimum investment amount on mutual fund if I am gifted a share of that fund?

It is highly unlikely that Vanguard would allow this (either the "gift"/ sale of the initial share or the subsequent investment of less than the minimum). But since this is a company/ fund ...
Justin Cave's user avatar
  • 27.3k
7 votes
Accepted

Can you lose money in Vanguard money market settlement fund?

Possible but very unlikely. Money market funds invest in high grade liquid assets and the primary goal is not to lose money. I have not been able to find an example of a Vanguard money market fund ...
zeta-band's user avatar
  • 3,997
7 votes
Accepted

Is there any reason to choose my bank's index fund over Vanguard?

That expense ratio on the bank fund is criminally high. Use the Vanguard one, they have really low expenses.
zeta-band's user avatar
  • 3,997
7 votes

What do mutual funds do with the dividends that the securities that they contain give out?

Almost all US stock mutual funds pay out the dividends received over the year in a lump sum annually, or in some cases, semi-annually or quarterly. Bond mutual funds (and money market funds) usually ...
Dilip Sarwate's user avatar
6 votes
Accepted

Vanguard Mutual Funds -- Diversification vs Share Class

If I were in your shoes I'd probably take the Vanguard Total Market fund with Admiral shares, then worry about further diversification when there is more in the account. Many times when you "...
quid's user avatar
  • 49k
6 votes

Does Vanguard ensure that employees do not overcontribute to their 401(k)?

I don't know if the tracking is done by the payroll department or the 401k trustee, but my experience has been that the only thing they can't account for is multiple jobs. Having two jobs ...
mhoran_psprep's user avatar
6 votes
Accepted

Can money work that hard for you?

TL;DR - yes, any assumption north of 10% is a too good to be true scenario. The US stock market, as measured by the S&P, has returned 10.51% CAGR. But, there was a standard deviation of 19.61% ...
JTP - Apologise to Monica's user avatar
6 votes
Accepted

What happens when you withdraw money from a Vanguard mutual fund?

None of your scenarios is correct, and some of your premises are invalid too. First, you don't have an investment of $10K in VTWSX; you own a certain number of shares in VTWSX, and at the current ...
Dilip Sarwate's user avatar
6 votes
Accepted

Vanguard UK lets you invest in the S&P 500 index fund. What about my taxes?

No, you generally pay tax on foreign investments in the country where you live, not the country where the investment is based. The companies in the S&P 500 pay US corporation tax on their profits, ...
Mike Scott's user avatar
  • 23.5k
6 votes
Accepted

Why does this ETF appear to have price drops that are (virtually) infinite over the last 5 years?

Yahoo is notorious for providing bad data. If you go into the Historical Data that they provide you'll see that on one day the closing price is around 28p and the next day it is arould 2,400p Try ...
Bob Baerker's user avatar
  • 76.7k

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