VTI and VOO are representative ETFs operated by Vanguard in the United States. Let’s delve into the specific differences between these two ETFs.
- Summary Comparison of VTI vs. VOO
- Price Trend of VTI vs. VOO
- Holdings of VTI vs. VOO
- Considerations when Investing in VTI vs. VOO
Summary Comparison of VTI vs. VOO
Please see below details.
| Category | VTI | VOO | Notes |
| Name | Vanguard Total Stock Market ETF | Vanguard S&P 500 ETF | |
| Management | Vanguard | Vanguard | Top-tier US asset management firm |
| Investment Strategy | Tracking the entire US stock market | Tracking the S&P 500 index | |
| Asset Size | $345 billion | $376 billion | Both are ultra-large ETFs |
| Annual Cost | 0.03% | 0.03% | Both have minimal cost rates |
| 1-Year Return | 20.50% | 21.90% | |
| Dividend Yield | 1.45% | 1.46% | |
| Number of Holdings | 4000 | 1000 | |
| Investment Purpose | Investing for wide market exposure; Low-cost investing | Investing in blue-chip stocks; Low-cost investing |
Investment Strategy: VTI invests across the entire U.S. market, while VOO primarily invests in large-cap U.S. stocks. However, since VTI also has a large proportion of large-cap stocks, other ETFs may be more suitable for investors seeking exposure to small-cap stocks.
Size: In terms of asset size in the U.S. market, VOO ranks third and VTI fourth, making them both ultra-large ETFs. For reference, the first place is SPY, the second is IVV, and the fifth is QQQ.
Cost: With a cost of 0.03%, they are highly efficient in terms of cost. For reference, SPY is at 0.09%.
1-Year Return: They track the market’s growth rate, with large-cap stocks performing slightly better.
Dividend Yield: They may be not ETFs primarily invested for dividends. However, with the recent high price return, the relative dividend yield may tend to appear low.
Number of Holdings: VTI invests in about four times as many companies as VOO.
Investment Purpose: They are ETFs that allow for low-cost investing with broad exposure to the U.S. market. They may be relatively stable ETFs and may not be suitable for investors aiming for high growth and high returns.
Price Trend of VTI vs. VOO
Recent 6-Month Price Trend
The performance of the two ETFs appears to have little difference over the past six months.
Recent 12-Month Price Trend
Recent 60-Month Price Trend
Holdings of VTI vs. VOO
VTI Holdings
The proportion of representative U.S. companies is set high.
VOO Holdings
Since VOO tracks the S&P 500 Index, it does not include Apple and NVIDIA.
Considerations when Investing in VTI vs. VOO
The performance of VTI and VOO is quite similar, but it’s important to fully understand a few differences. See the details below.
Market Tracked
VTI tracks the entire U.S. market, while VOO primarily invests in large-cap stocks of the S&P500. The performance may be almost identical, but VOO may be more suitable for investors who want to invest in blue-chip stocks.
Differences in Holdings
VTI is an ETF that invests in a diversified way across large-cap, mid-cap, and small-cap stocks. On the other hand, VOO reflects primarily large-cap stocks. If you want to reflect the entire market’s movements in performance, VTI may be more suitable.
However, there are also similar points overall, so please refer to the following as well.
Dividend Investing
Both ETFs are broadly exposed to the market, so the dividend yield is close to the market average. Consequently, they may not be suitable for investors who aim to generate cash flow through high dividends.
Investors who want to create cash flow through dividend investing may consider monthly dividend stocks like JEPI, O.
High Return Investing
VTI and VOO invest in the U.S. market and large-cap stocks. Compared to ETFs such as QQQ, which invests in high-growth tech stocks, the price return may be lower. Of course, the lower volatility may be understood as an advantage.
Disclaimer
- This article is not written to solicit investments.
- The information provided may not be accurate due to differences in the reference period, so investors are advised to verify it themselves.
- The decision and responsibility for investments lie with the individual investor, and the author of this article does not bear any responsibility for the investment results of the readers.
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