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The expense ratio for VFINX is 0.16%, compared to average yearly returns of 6%. Over 30 years, that's the difference between 5.74x and 5.48x your starting capi
by Inufu 10y ago
The expense ratio for VFINX is 0.16%, compared to average yearly returns of 6%.
Over 30 years, that's the difference between 5.74x and 5.48x your starting capital. Noticeable, but insignificant compared to the taxes you'll pay.
- twblalock 10y agoIt can be even cheaper than that. If you buy VOO, the ETF equivalent of VFINX (Vanguard's ETFs hold the same portfolio as their corresponding funds), the expense ratio will be only 0.05%. If you buy this ETF through Vanguard, you will not pay any commissions. It's very close to being free, and definitely the cheapest way to invest in the S&P 500.