Investing in VT vs VTSAX

Hi all,

I’m quite new to ETF investment, actually just started to invest few days ago after a long period of research.
Now I just wonder if it really worths to assume the below risks when investing on VT ETF. If I plan to invest more than 3000$ (minimum fund buy-in) wouldn’t I better stick with VTSAX?

“Because ETF Shares are traded on an exchange, they are subject to additional risks:
• The Fund’s ETF Shares are listed for trading on NYSE Arca and are bought and sold
on the secondary market at market prices. Although it is expected that the market
price of an ETF Share typically will approximate its net asset value (NAV), there may
be times when the market price and the NAV differ significantly. Thus, you may pay
more or less than NAV when you buy ETF Shares on the secondary market, and you
may receive more or less than NAV when you sell those shares.
• Although the Fund’s ETF Shares are listed for trading on NYSE Arca, it is possible
that an active trading market may not be maintained.
• Trading of the Fund’s ETF Shares may be halted by the activation of individual or
marketwide trading halts (which halt trading for a specific period of time when the
price of a particular security or overall market prices decline by a specified
percentage). Trading of the Fund’s ETF Shares may also be halted if (1) the shares are
delisted from NYSE Arca without first being listed on another exchange or (2) NYSE
Arca officials determine that such action is appropriate in the interest of a fair and
orderly market or for the protection of investors.”

1 Like

Did you copy-paste these tips from an American website? I am not aware of a way for us to invest in VTSAX here in Switzerland. To do this, you need to open an account with Vanguard, which is only possible if you are domiciled in the US. We have no other way that to invest in ETFs.

4 Likes

Obviously. Though one these “American websites” is the SEC (!) that they’ve filed to.

And anyway since TER is lower for the ETF than most retail mutual fund share class for vanguard, using the ETF still makes sense :slight_smile:

(tho there’s a trick, you can buy the fund at vanguard then have them convert it to ETF, if you’re worried about spread/premium/discount)

I copy-pasted from here:
https://www.prospectusdocs.com/eol/request?PAGE=DISPLAYPAGE&cid=963917&s=922042742&prid=000404507733
same content as in San_Francisco’s link.

Thanks for your feedback guys

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