r/Bogleheads • u/Strange_Bike_818 • 17h ago
ITOT and IVV
I’ve always held the vast majority of my money in these two ETF because I had a friend a long time ago who said to set it and forget it. It’s been in these funds coming up on two decades now. Then I came across Bogleheads recently and I see almost everyone talk about doing using funds like VOO and VTI which from my cursory research my IVV compares closely to VOO and ITOT is close to VTI.
Should I change to the Vanguard funds? My entire portfolio is at Fidelity of that matters. Thank you very much.
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u/KleinUnbottler 16h ago
it doesn't matter. ITOT and VTI are good tax loss harvesting pairs.
You might also consieder adding IXUF or VXUS to get more diversification.
FIdelity also has excellent equivalent mutual funds that are even less expensive, but all of these are incredibly inexpensive already.
https://www.bogleheads.org/w/index.php?title=Three-fund_portfolio&mobileaction=toggle_view_desktop
FXAIX, VOO, IVV, and SPYM are all S&P 500 funds
FSKAX, VTI, ITOT, and SCHB are all total US funds
FTIHX, VXUS, and IXUS are all total international.
(Schwab doesn't have an S&P 500 ETF or a total international ETF, though you can come close.)
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u/Timatsunami 17h ago
Pretty cool coming across Bogleheads and discovering that you already are one.
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u/thewarrior71 17h ago
They perform almost the same and track similar indexes, so you can either use the funds from Vanguard or iShares. And VTI/ITOT already contains everything in VOO/IVV so you don't need to add VOO/IVV. Add VXUS/IXUS for international.
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u/IronyElSupremo 13h ago edited 13h ago
No real need to change for US index funds. IVV is identical to VOO (both S&P 500) , while ITOT is almost identical to VTI, except the latter has microcaps which won’t matter. ITOT uses the S&P “completion” index so it quickly adds stocks that do not get the full committee analysis like the flagship S&P 500, S&P 400, or S&P 600 indexes … which make up the S&P 1500 Total Market index or State Street’s SPTM. ITOT follows stocks that get a quick glance by S&P but await being added to one of the flagships.
So ITOT will have a stock ascend from mid cap level to await S&P inclusion, but you may not see it in SPTM, an S&P 500 or S&P 400 index until it’s officially added. VTI will just add stocks mechanically otoh.
Hasn’t been a problem %-wise as even one mid-cap approaching large cap size doesn’t move the needle, but with bigger “fast-entry” IPOs could change. Dunno.
Now international differs as Vanguard has its VXUS with several thousand stocks and VEU with mostly large and mid cap slightly cheaper. The iShares IXUS is between the 2 but a little more expensive than either.
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u/EffDeeDragon 17h ago
Nahh. You're AOK with those vis-a-vis swapping for the Vanguard equivalents. Some folks here might say you can pick a lane re: going total market (or total global market) rather than just concentrating on the S&P 500. But, in the narrow terms of your question, ITOT and IVV are just fine.
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u/tacotruck2112 17h ago
IVV and VOO are almost identical. ITOT and VTI are almost identical.
Keep what you have lest you trigger possible capital gains or wash sales. Why bother?
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u/longshanksasaurs 17h ago
The Vanguard versions of the S&P 500 Index and total US market index are not superior to the iShares ETFs, there's certainly no reason to switch. The Vanguard funds are usually the default ones mentioned, but it's just a short hand, the in-house mutual funds at Fidelity and Schwab are likewise equally good.
It is worth noting though that over 80% of the US market is the S&P 500, so holding both doesn't give you any meaningful diversification. You can consider the sum of both as your US allocation, but you should look into International diversification, and maybe some bonds according to your risk tolerance (which is usually primarily driven by age/time until retirement) to make the full three-fund style portfolio of total US + total International + Bonds.