UK equivalent of Vanguard Total Stock Market Index Fund
After reading the Simple Path to Wealth by JL Collins, the question that was on my mind was, what is the UK equivalent of the Vanguard Total Stock Market Index Fund?
I was desperate to get started with my investing journey and I was very interested in starting with Vanguard US Total Stock Market index fund.
I contacted Vanguard in the UK and asked them the question. Can I invest in Vanguard US Total Stock Market index fund?
They came back and said no, they do not offer Vanguard US Total Stock Market index fund in UK.
They told me about the alternative to Vanguard US Total Stock Market index fund in Uk which is the U.S. Equity Index Fund.
Looking into US Equity Accumulation Index Fund it has very close to the number of stocks in the Vanguard US Total Stock Market index fund. They both have samples of all the stocks listed in the US stock market.
Vanguard US Total Stock Market index fund on Trading 212 platform
Recently, I found out that Vanguard US Total Stock Market index fund is available via Trading 212.
Below image is a screenshot of me searching for it on my Trading 212 Individual Saving Account ISA.
Trading 212 is one of the commission-free investment platforms in the UK.
Trading 212 have the exchange-traded fund (ETF) version of the Vanguard US Total Stock Market Index Fund.
If you are interested in the option of Trading 212, you can get a free share if you open a new account and investment minimum of £1. I will also get a free share so it is a win for both of us.
You can invest in the Vanguard US Total Stock Market Index Fund on Trading 212.
Do you want to get a free stock share worth up to £100?
Create a Trading 212 Invest account using the link below and we both get a free share!
|Click here to invest in Vanguard US Total Stock Market on Trading 212|
VTI vs VTSMX
The main difference between VTI and VTSAX is that VTI is an exchange-traded fund (ETF) while VTSAX is an index fund.
VTI can be purchased for the price of one share. VTSAX has a minimum initial investment. As well, VTI can only be traded during trade during market hours.
Both of these funds invest mainly have very similar stocks in them. It is important to mention that they are not the same price as regards price for 1 unit.
Vanguard US Total Stock Market in for of ETF is available in UK. VTI is available for UK investors on Trading 212.
|Invest in Vanguard US Total Stock Market on Trading 212|
U.S. Equity Index Fund
I believe U.S. Equity Index Fund is also a good fund like the VTI or VTSMX.
It is available in two share class
Accumulation – If you choose accumulation, your dividend will be automatically reinvested.
Income – As for income option, its the opposite of accumulation. Your dividend will not be automatically reinvested. It will be there in your account to withdraw if you choose to.
The management cost is very low compare to other funds.
As at the time of writing the ongoing charge figure (OCF) is 0.10%. You can check the Vanguard website for the latest OCF by clicking here.
It is a passive fund which is the reason why the management cost is low.
This fund invests in a lot of the biggest companies like
- Alphabet (Google)
- Berkshire Hathaway Inc
- Johnson & Johnson
- JPMorgan Chase
I wrote a blog post answering this question Does Vanguard UK offer REIT funds?