[Daniel]

It seems like ETF is the way to go due to the potential tax hit when other index owners sell a share? The only advantage for index funds seems to be auto investing, what are your thoughts?

We can run the assumption it’s VTI vs VTSAX which have basically the same expense ratio.

[Sean]

This doesn’t occur with vanguard mutual funds. And as others have said you mean mutual fund not index fund. VTI is an ETF which is also an index fund.

And you say “only” auto investing, but auto investing can make a huge difference in long term investing success.

[Frank]

Index funds can be ETFs. You are correct that ETFs are more efficient than mutual funds, which is one of the reason Vanguard encourages people to switch to them to save on expense fees.

Don’t miss: I need direction on which funds/etf’s to purchase

[Christopher]

You mean mutual fund rather than index fund. But yes, mutual funds are high tech 1970’s tech. Ancient, not great.

Some brokerages even allow some degree of auto investing in ETFs I think these days. ETFs are also cheaper usually, and more portable between brokerages. There’s essentially no reason to use a mutual fund when there’s an equivalent ETF.

[Paul]

We’ve always bought ETFs, since 2004 when funds like VTV became available.

[Mark]

Long term there is no different between VTI and VTSAX. Don’t waste time or energy trying to switch from one to the other.

[Author]

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