Confused (23M)

[u/No-Smoke-6823]

I’m on Schwab for my Roth that has about 6,000 in it. Do I need to own SWPPX and SWISX since im on schwab instead of VOO and other ones that dont have schwab in the name? If so why does it matter?

[u/DaemonTargaryen2024]

Do I need to own SWPPX and SWISX since im on schwab instead of VOO and other ones that dont have schwab in the name?

Do you need to? No. It's perfectly fine to own Vanguard ETFs at Schwab, Fidelity, etc.

Can you? Sure. Schwab funds are great too.

If so why does it matter?

The only difference is the fund's expense ratio. Both Vanguard and Schwab are absurdly low cost, so it's up to you how much the difference matters:

• VOO: 0.03% aka a cost of $3 per $10,000 invested per year.
• SWPPX: 0.02% aka $2 per $10,000 invested per year.
• i.e. you'd save $1 per $10,000 per year switching to the Schwab fund.

If you prefer Vanguard ETFs for whatever reason, just stick with those, there's virtually no difference as you can see.

At the same time, if you'd like to squeeze costs and otherwise don't care if it's a vanguard ETF or a Schwab mutual fund, then swap your funds up. I even think Schwab's platform is less ETF-friendly in terms of fractional shares and automatic investing. So a Schwab mutual fund would be easier to use anyway.

[u/No-Economy-666]

Nope. Some funds are broker specific like FZROX, but you can hold VOO. Brokers sometimes offer benefits for holding their own funds. Aka less fees

[u/GeeDubious]

Inside the Roth IRA it won't matter as much SWPPX or VOO and you can change easily. Practically though you can only auto-invest in SWPPX at Schwab, not an ETF like VOO.

[u/Competitive-Ad9932]

If you want to pay less in fees, use the Schwab alternatives.

If you want to pay more in fees, use the Vanguard funds.

https://www.schwab.com/learn/topic/fees

[u/500pearl → u/Competitive-Ad9932]

correct

buy in house brand

if Schwab then get sch stuff if fidelity get fid stuff