Fund comparisons

Fund comparisons

Most fund comparisons put two funds in a table and color the winner. These run both through a retirement simulation instead, and separate the part of the difference you can count on — fees and tax — from the part that only holds if the last five years repeat. Often the honest answer is that the choice barely matters.

How to read these

On known costs alone, SCHD and VOO come out about even here. VOO's 28.2-point lead in the plan's success rate comes from how the two funds performed over the last five years, so it holds only if those years repeat.

Who these answers are for

Each card's answer is for a saver about twenty years from retirement with an average balance for their age, investing in a taxable account at the 15% dividend rate. Gaps are points of the plan's success rate. Open a pair to change the situation.

Index funds for your core holding

  1. VOO vs VTI — The S&P 500, or the whole US market? Only past returns separate them. On known costs: about even. If the last five years repeat: VOO ahead by 2.6 points.
  2. VOO vs QQQ — Is the Nasdaq-100 worth the extra swings? Barely matters. On known costs: about even. If the last five years repeat: about even.
  3. VTI vs VT — The US stock market, or the whole world? Only past returns separate them. On known costs: about even. If the last five years repeat: VTI ahead by 4.6 points. For VT that tax figure is approximate: the model ignores the foreign tax credit and treats all of its dividend as qualified.

Same index, different fund

  1. VOO vs IVV — Same index, two issuers. Does it matter? Barely matters. On known costs: about even. If the last five years repeat: about even.
  2. VOO vs SPY — The same S&P 500, at different prices. Barely matters. On known costs: about even. If the last five years repeat: about even.
  3. FXAIX vs VOO — An S&P 500 mutual fund or an S&P 500 ETF? Barely matters. On known costs: about even. If the last five years repeat: about even.
  4. QQQ vs QQQM — Two Nasdaq-100 funds from the same company. Barely matters. On known costs: about even. If the last five years repeat: about even.

Dividend funds

  1. SCHD vs VIG — Two dividend screens, one real difference: tax. VIG ahead on fees and tax. On known costs: VIG ahead by 2.8 points. If the last five years repeat: VIG ahead by 19.5 points.
  2. SCHD vs VOO — Do you need a dividend fund at all? Only past returns separate them. On known costs: about even. If the last five years repeat: VOO ahead by 28.2 points.
  3. VIG vs DGRO — Two dividend-growth funds, nearly the same idea. Barely matters. On known costs: about even. If the last five years repeat: about even.
  4. SCHD vs VYM — A tight dividend screen or a broad one? Only past returns separate them. On known costs: about even. If the last five years repeat: VYM ahead by 24.3 points.

Growth, value and sectors

  1. VUG vs VTV — Growth or value: two styles of large company. Barely matters. On known costs: about even. If the last five years repeat: about even.
  2. VOO vs VUG — The whole S&P 500, or only its growth companies? Only past returns separate them. On known costs: about even. If the last five years repeat: VOO ahead by 3.0 points.
  3. VGT vs QQQ — A technology sector fund or the Nasdaq-100? Barely matters. On known costs: about even. If the last five years repeat: about even.

Outside the US

  1. VTI vs VXUS — How much to hold outside the US. Only past returns separate them. On known costs: about even. If the last five years repeat: VTI ahead by 26.0 points. For VXUS that tax figure is approximate: the model ignores the foreign tax credit and treats all of its dividend as qualified.
  2. VXUS vs VEA — International stocks, with or without emerging markets. Only past returns separate them. On known costs: about even. If the last five years repeat: VEA ahead by 8.4 points. For VXUS and VEA that tax figure is approximate: the model ignores the foreign tax credit and treats all of their dividends as qualified.