DESK / METHODOLOGY
2026 edition
REFERENCE / TRUST SURFACE
Methodology and sources
Per-source primary references, refresh cadence, scope boundaries, editorial principles, and the corrections process. Every numerical claim on this site is anchored to one of the publishers in the table below.
SECTION 01 / SOURCES
Per-source reference table
The following publishers are the primary sources for every figure, mechanic, and rule cited on this site. Each row links to the publisher's own page, lists the refresh cadence we monitor, and explains what we use the source for. If a number on this site cannot be traced back to a row in this table, it is a bug and we want to hear about it.
| Publisher | Refresh | What we use it for |
|---|---|---|
| SEC EDGAR (Form N-CSR / N-PORT / N-CEN / 485BPOS filings) | Monthly refresh; on-filing for new prospectus amendments | Primary regulatory source. Form N-CSR (17 CFR 270.30b2-1) is the semi-annual audited shareholder report; source for stated expense ratio, schedule of investments, and capital-gain distribution detail. Form N-PORT (17 CFR 270.30b1-9) is the monthly portfolio holdings filing, public 60 days after the third month of each fiscal quarter. Form N-CEN (17 CFR 270.30a-1) is the annual census of structural data. Form 485BPOS (17 CFR 230.485) is the annual prospectus amendment. Every fund cited on this site has its CIK listed in fund-cik-map.json; clicking any CIK on a pair page jumps to that fund's EDGAR filings. |
| SEC Rule 6c-11 (17 CFR 270.6c-11) - the ETF Rule | Quarterly hash-check | The 2019 rule that allows most ETFs to operate without individual exemptive orders. Codifies in-kind creation and redemption under § (c)(2), the structural mechanism that drives ETF tax efficiency. Adopted by the SEC on 25 September 2019 via Release No. IC-33646 (84 FR 57162); effective 23 December 2019; compliance date 23 December 2020. Source on this site for every ETF mechanical statement. |
| Investment Company Act of 1940 (Pub. L. 76-768) | Quarterly hash-check | The federal statute that registers, regulates, and supervises every US-listed investment fund. Codified at 15 U.S.C. §§ 80a-1 through 80a-64. Key sections cited on this site: § 8 (registration), § 17 (affiliated transactions), § 22(d) (mutual fund daily-NAV pricing), § 22(e) (seven-day redemption), § 30 (periodic reporting). SEC PDF of the full statute: https://www.sec.gov/about/laws/ica40.pdf. |
| 26 U.S.C. Subchapter M (RIC pass-through taxation) | Quarterly hash-check | Subchapter M of the Internal Revenue Code: §§ 851-855. Pass-through tax framework for regulated investment companies. § 851 defines RIC qualification (90% income test, 50% asset diversification). § 852(a) requires distribution of at least 90% of investment company taxable income. § 852(b)(6) is the statutory basis for ETF in-kind redemption tax neutrality: a RIC does not recognise gain or loss on a distribution of property in kind to a redeeming shareholder. § 852(b)(3) governs capital gain dividend designation. § 1(h)(11) defines qualified dividend income. § 1411 imposes the Net Investment Income Tax. |
| SEC Adopting Release IC-33646 for Rule 6c-11 | Static (historic) | Full text of the SEC's 2019 adopting release for the ETF Rule, including preamble analysis, response to comment letters, and economic analysis. Used on this site wherever the SEC's own reasoning about ETF mechanics is quoted or referenced. Federal Register citation: 84 FR 57162. |
| Fund prospectuses filed with SEC EDGAR (VOO, VFIAX, VTI, VTSAX issuer) | Monthly check, on prospectus update | VOO, VFIAX, VTI, VTSAX, VXUS, VTIAX, BND, VBTLX expense-ratio and minimum disclosures, plus the long-running history of the dual share-class patent (issued 2001, expired 2023) that gave VFIAX and VTSAX their unusual mutual-fund tax efficiency. The issuer's published prospectuses are the source of every figure for these tickers on the site. |
| Fidelity fund prospectuses and product pages | Monthly check, on prospectus update | FXAIX, FSKAX, FTIHX, FXNAX, FNCMX, FZROX, FNILX expense ratios and the proprietary-fund portability constraint (these funds cannot be transferred in kind to non-Fidelity brokerages). Fidelity's product pages and the underlying SEC filings are the authority for every Fidelity ticker we cite. |
| Schwab fund prospectuses and product pages | Monthly check, on prospectus update | SWPPX, SWTSX, SCHB and the Schwab proprietary-index family. Like FXAIX at Fidelity, these are zero-minimum at Schwab but cannot be transferred in kind to other brokerages. Schwab's product pages and SEC filings are the authority for the figures on this site. |
| iShares (BlackRock) ETF product pages | Monthly check, on prospectus update | IVV, ITOT, IXUS, AGG and the broader iShares ETF lineup. iShares is BlackRock's ETF brand, the largest ETF issuer globally. Product pages publish current expense ratios, holdings counts, and creation-unit sizes. The official prospectus filings on EDGAR are the deeper authority. |
| FINRA (regulatory and fund-screening tools) | On regulatory update | Self-regulatory authority for US broker-dealers. Reference for fund-screening tools and the underlying broker-dealer rules that determine which products a brokerage can offer. Used on this site for context on how 401(k) plan recordkeeping infrastructure determines what fund types a participant can hold. |
| IRS Topic 409 (long-term capital gains rates) | Annual (on bracket update) | Long-term capital gains rate brackets and the qualified-dividend treatment that applies to broad-equity ETFs and mutual funds. The 0%, 15%, 20% federal LTCG bracket structure plus the additional 3.8% Net Investment Income Tax for high earners are the figures used in tax-drag examples on the tax-efficiency and expense-ratios pages. |
| IRS Publication 590-A and 590-B (IRA contribution and distribution rules) | Annual | Roth IRA and Traditional IRA contribution limits, income phase-out bands, qualified-distribution rules, and back-door conversion mechanics. The figures used on the Roth IRA guide ($7,000 / $8,000 contribution limits, MAGI phase-out bands) come from these publications. |
| Investment Company Institute (ICI) Fact Book and research | Annual (Fact Book) plus monthly statistical updates at ici.org/research/stats | The leading association representing regulated investment funds in the United States. ICI publishes the annual Investment Company Fact Book (canonical reference for asset-weighted average expense ratios), Trends in the Expenses and Fees of Funds (annual ICI Perspective), and monthly statistical releases on fund flows. The headline asset-weighted comparison (roughly 0.14% equity ETF average vs 0.40% equity mutual fund average) comes from these publications. Industry-wide figures cited on the expense-ratios and home pages reference ICI. |
| USPTO Patent 6,879,964 (dual share-class structure) | Static (historic) | Original application 9 March 2001, issued 12 April 2005, expired 16 May 2023. The dual share-class patent. Permitted a single fund portfolio to issue both mutual fund and ETF share classes, letting the ETF class absorb low-basis stock through in-kind redemption and sweep tax efficiency back to mutual fund holders. Source on the tax-efficiency page and the VOO vs VFIAX page for the structural exception narrative. |
| FINRA Fund Analyzer (regulator-built fund-cost tool) | Continuous | Self-regulatory organisation tool for comparing US-registered fund expense ratios, loads, and 12b-1 fees. Used as the independent verification surface for figures cited on this site. FINRA operates under SEC oversight per § 19 of the Securities Exchange Act of 1934 (15 U.S.C. § 78s). FINRA Rule 2210 governs communications with the public about funds. |
| SEC Investor.gov (Office of Investor Education and Advocacy) | On regulatory update | Regulator-authored plain-English explanation of ETF and mutual fund mechanics. Used as the federal-government investor-protection reference. Companion to the ETF and mutual fund investor bulletins that the OIEA publishes for retail audiences. |
| Morningstar (fund ratings, expense ratio research, distribution histories) | Continuous (free tier sufficient for the figures cited) | Independent fund-research firm. Used on this site for capital-gains distribution histories, secondary verification of expense ratios where issuer pages and SEC filings are unclear, and category-classification consistency. Morningstar's analyst commentary is not used as a primary source; the underlying issuer data is. |
| Bogleheads wiki (community-maintained reference) | Continuous (community-edited) | Community-maintained reference for the index-investing canon: total-market versus S&P 500 debates, three-fund portfolio reasoning, the case for VTSAX, the historical context on John Bogle's argument for owning the entire market. Used as a secondary reference for terminology and historical context, not as a numerical source. Where Bogleheads cites a figure, we trace it to the underlying issuer or regulator filing before quoting. |
| Investopedia (terminology reference) | On topic update | Terminology reference for jargon definitions (Authorized Participant, creation unit, NAV, T+1 settlement, basis point, qualified dividend). Used as a vocabulary backstop only. Numerical claims on this site never originate from Investopedia; they originate from the issuer or regulator filings above. |
SECTION 02 / EDITORIAL PRINCIPLES
Six rules that shape every page
If a page states an expense ratio, a contribution limit, a tax rate, a fund minimum, or any other number, that number is wrapped in a hyperlink to the underlying primary source: the SEC filing, the IRS publication, the issuer prospectus, or the ICI research page. Plain-text source mentions ('according to SEC' without a link) are not source citations and do not count.
The site does not tell you to buy VOO, sell VFIAX, switch from FXAIX to VOO, or do anything else specific with your money. Pages explain how the wrappers work and which scenarios each suits structurally. Decisions about your own money belong to you and a licensed financial professional, not to this site.
Two funds tracking the same index hold the same stocks and produce essentially identical returns before fees and taxes. Pages refuse to dramatise differences that are mechanically negligible. The wrapper question is plumbing: tax efficiency, automation, account-type fit. The site says this on every relevant page.
The about page states clearly that the author is an engineer-publisher, not a CFP, CFA, registered investment adviser, Series-65 holder, or fiduciary. We refuse to imply credentials we do not have. Where a personal-finance plan is the right answer, we point readers to NAPFA and the XY Planning Network rather than positioning ourselves as the destination.
The verification date lives in one constant (LAST_VERIFIED_DATE in src/lib/schema.ts) imported by every page. Footer text, schema dateModified, and visible "data verified" labels all read from that single source. Cosmetic refreshes (bumping the date without a substantive review) are structurally not possible. Currently reads 28 May 2026.
Where issuer figures vary slightly between the prospectus, the product page, and the SAI (statement of additional information), the page uses the conservative figure and notes the small variance inline. Capital-gains distribution percentages are presented as ranges, not single point estimates, because actual distributions vary year to year.
SECTION 03 / IN SCOPE
What this site covers
- +Expense ratios and fund minimums sourced from issuer prospectuses, with the SEC filing as deeper authority.
- +Side-by-side fund-pair comparisons across S&P 500, total US market, international developed, US bonds, and Nasdaq-100.
- +Mechanical explanation of in-kind creation and redemption, the structural reason ETFs distribute fewer capital gains than peer mutual funds.
- +Account-type guidance for Roth IRA, Traditional IRA, 401(k), and taxable brokerage accounts, keyed to IRS rules and brokerage capabilities.
- +Historical context on the dual share-class patent (USPTO 6,879,964, issued 2001, expired 2023) and what its expiry means for other issuers.
- +Tax-rate context on long-term capital gains, qualified dividends, and Net Investment Income Tax, sourced from IRS publications.
SECTION 04 / OUT OF SCOPE
What this site explicitly does not do
- -Specific buy or sell recommendations for any named ticker.
- -Predictions about which fund will outperform over any horizon.
- -Personal-finance plans, retirement-income strategies, tax-loss-harvesting execution for an individual portfolio, or any other licensed-adviser activity.
- -Active-management fund recommendations, factor-tilt portfolio construction, or sector-allocation calls.
- -Cryptocurrency, single-stock analysis, options strategies, leveraged ETFs, or any non-broad-index product family.
- -Tax preparation, legal advice on retirement-account beneficiary designations, estate planning, or any other licensed professional service.
SECTION 05 / REFRESH CADENCE
When the site is reviewed, and what triggers an out-of-cycle update
Pages are re-verified against issuer prospectuses, IRS publications, and ICI data in the first business week of each month. The verification date is held in a single constant imported by every page; the date and the underlying review have to match. Cosmetic refreshes (bumping the date without a substantive review) are structurally prevented.
Out-of-cycle refresh triggers (handled within the week of publication):
- ●A major issuer (Fidelity, Schwab, iShares, or another fund family) publishes a revised prospectus changing an expense ratio cited on the site.
- ●IRS publishes new contribution limits or tax-bracket figures (typically October or November of the prior year).
- ●SEC approves a new dual share-class structure for a major issuer that materially affects the structural exception narrative.
- ●ICI publishes a new annual Fact Book with revised industry-average expense ratios.
- ●A reader-reported correction is verified against a primary source.
SECTION 06 / LIMITATIONS
Known limitations of the figures and rules cited
- ●Expense ratios change. The figures on this site reflect prospectuses as of the verification date in the footer; check the issuer's current prospectus before acting.
- ●Capital-gains distribution percentages cited on the tax-efficiency page are typical ranges from recent industry experience; actual distributions vary by year and by fund.
- ●Tax-rate figures cited reflect current US federal rules; state rates and your personal bracket vary.
- ●The structural exception narrative depends on the original issuer continuing to operate the dual share-class structure under terms that do not require IRS or SEC reinterpretation; we treat that continuity as the working assumption.
- ●Sister-issuer dual-class filings are in flight; the site updates as approvals land but lags the absolute leading edge of regulatory news.
SECTION 07 / EDITORIAL POSITION
The honest framing
ETFvsIndexFund.com is operated by Digital Signet, an independent reference-content studio. The site is a research-and-summarisation reference grounded in primary sources, not investment advice. The author, Oliver Wakefield-Smith, is an engineer and publisher; he holds no CFP, no CFA, no Series-65 registration, and is not a fiduciary. The site does not sell brokerage referrals, does not earn affiliate commission on any fund purchase, and is not a registered investment adviser lead generator. See the about page for the operator detail and the wider portfolio context.
For decisions about your own money: consult a fee-only fiduciary you have hired and paid. Find one through NAPFA or the XY Planning Network. Reference sites, including this one, are a useful research input; they are not the person who should be advising you on your retirement.
SECTION 08 / CORRECTIONS
How to flag a stale figure or factual error
For methodology questions, stale figures, or claims that do not survive a primary-source check, email [email protected] with the page URL, the figure or claim, and a primary-source link if you have one. Substantive corrections are typically actioned within five business days. Where the correction is non-trivial, the change appears in the page footer.
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