If I get any information wrong, please feel free to correct me.
I started investing in SWPPX because it was what I can afford at the time. I couldn't afford a Vanguard fund that requires $3,000 of investment minimum. So I decided to choose Charles Swchab as my broker for my index fund; a minimum of $1 investment.
VFIAX has an expense ratio of .04% and SWPPX has .02%.
The price of shares are vastly different. Vanguard shares are more “valuable” than Swchab's. But I guess that doesn't really matter in the grand scheme of things.
So my question is this, why does Vanguard have such a high investment minimum than Swchab if they both track the S&P 500 the same way? What am I missing here?
Leave a Reply