techcaleb t1_j2e8r68 wrote on December 31, 2022 at 4:46 PM

VTI has an expense ratio of 3 bps, while VTSAX has an expense ratio of 4 bps. So you would be paying slightly more for the exact same fund. But the different is negligible, so the bigger question is whether you would prefer to invest in an ETF or a mutual fund.

Luxtenebris3 t1_j2ei9f7 wrote on December 31, 2022 at 5:49 PM

The cash drag (assuming no fractional etf shares) will more than make up the ER difference until there is a sizeable sum invested. Tbh this low of a difference doesn't matter and fund availability and behavioral factors almost certainly are more important.

Cruian t1_j2ejftg wrote on December 31, 2022 at 5:57 PM

>The cash drag (assuming no fractional etf shares) will more than make up the ER difference until there is a sizeable sum invested

Remembering some quick math I had done months ago, it was hundreds of thousands.

However, I think I have heard of Vanguard doing a rollout of fractional Vanguard only ETFs for at least some users.

Other factors can still be more significant than the 1 basis point difference.

Cruian t1_j2eibwg wrote on December 31, 2022 at 5:50 PM

There are other factors that can outweigh 1 basis point of ER difference. A single bad ETF trade can negate years worth of that advantage.