Comparing VTI and VOO: Which Vanguard ETF Index Fund Prevails – S&P 500 Index or Total Stock Market Index?

by | Aug 20, 2023 | Vanguard IRA | 17 comments




VOO and VTI are two of the most popular Vanguard ETF Index Funds available to be traded on the stock market. VOO is the Vanguard S&P 500 Index Fund and VTI is the Vanguard Total Stock Market Index Fund. They’re technically the ETF version of the Traditional Index Fund, but they essentially hold the exact same investments.

In this video, we’re going to take a look at both of these Vanguard Index ETF Index Funds to find out what are the similarities, what are the differences, which one is better, and which one should you actually be using within something like your Roth IRA and Taxable investment accounts?

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Which one is the best Vanguard Index Fund to invest in:
To be honest with you, they’re both great and you can’t go wrong with picking either. If you want a little exposure to those mid, small, and micro-cap companies, while still playing it safe with the majority of your money, then VTI is going to be the ETF for you.

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If you’re not interested in messing with those smaller companies and want to stick with the heavy hitters in the stock market that you know will keep you safe then go with VOO.

And if you still don’t know then put a little bit of money into each one every time you invest.

Not investment advice, but I can tell you that I personally hold both of them within my overall money invested. I do have more put into an S&P 500 Index fund like VOO because my 401k is one of my larger accounts… and my employer doesn’t offer something equivalent to Vanguard’s Total Stock Market Index Fund so I don’t really have a choice.

No matter what, I think that one of these two, if not, a little bit of both, should make up a decent portion of your overall invested money to set yourself up for retirement.

The more important thing is to just get your money invested asap, no matter what the stock market is doing, because timing is everything and WHEN you invest will determine your returns more than anything.

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Disclaimer: This video is for entertainment purposes only. Everyone’s situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

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#VanguardIndexFunds #VTI #VOO…(read more)


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VTI vs VOO – Which Is The Best Vanguard ETF Index Fund? S&P 500 Index vs Total Stock Market Index

When it comes to investing in the stock market, index funds have emerged as a popular choice for many investors. These funds offer diversification, low fees, and the opportunity to closely mirror the performance of a particular market index. Vanguard, one of the largest investment management companies in the world, offers two popular index funds – VTI and VOO. In this article, we will compare the two funds and analyze whether the S&P 500 Index or the Total Stock Market Index is a better choice.

Before diving into the comparison, let’s have a brief overview of the funds. VTI, the Vanguard Total Stock Market ETF, seeks to track the performance of the CRSP US Total Market Index. This index includes all segments of the US equity market, from large-cap to small-cap stocks. On the other hand, VOO, the Vanguard S&P 500 ETF, aims to replicate the performance of the S&P 500 Index – a widely recognized benchmark consisting of 500 large-cap US stocks.

One of the key differences between the two funds is the index they track. The S&P 500 Index is a market-cap-weighted index, meaning that it gives greater weightage to larger companies within the index. On the other hand, the Total Stock Market Index includes companies of all sizes, making it more representative of the overall US stock market. This means that VTI provides investors with a broader exposure to the US equity market compared to VOO, which focuses solely on large-cap stocks.

Another significant distinction lies within the number of holdings within each fund. While VOO holds 500 stocks, as per its benchmark, VTI holds a much larger number of individual stocks – nearly 3,700 in total. This larger number of holdings contributes to the enhanced diversification offered by VTI. It can be argued that this diversification provides more stability, as it reduces the risk of relying heavily on a few individual stocks.

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When it comes to performance, the two funds have shown similar returns over the long term. This is somewhat expected, as both funds aim to replicate the overall market index they track. However, due to the differences in the composition of their underlying indexes, short-term performance can differ. The S&P 500 Index, with its focus on larger companies, may see greater stability during uncertain times, while the Total Stock Market Index can offer potentially higher returns during periods of economic growth.

Fees are another crucial aspect to consider when investing in index funds. Both VTI and VOO have low expense ratios, with VOO slightly edging out VTI. While the difference may seem minimal, especially for long-term investors, it is important to note that expenses can impact returns over time.

In conclusion, the choice between VTI and VOO depends largely on an investor’s specific goals and preferences. VTI, with its broader market exposure and greater diversification, may be suited for those seeking a more comprehensive representation of the US stock market. Meanwhile, VOO, with its focus on large-cap stocks and lower fees, may be preferred by investors looking for exposure to some of the more prominent companies.

Ultimately, both funds offer advantages and disadvantages depending on individual investment objectives. Conducting thorough research and consulting with a financial advisor can help investors make an informed decision based on their risk tolerance, time horizon, and long-term goals.

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17 Comments

  1. MATTHEWD373

    Im going to put money into voo, and i also want another portion to be VGT because it's more technology based, and technology is only growing, i know there's a bit of overlap. But i think having just a little bit more in technology can help grow my account.

  2. Josh Alvarez

    Thanks for the video Jarrad. They are all very informative. I was wondering why more people don't do videos on VONG or VUG. Two large Growth ETF's that have done well and are still doing well. Especially this year.

  3. JuanTutors

    I see a TON of videos comparing VYM to SCHD which makes sense on an apples to apples basis, but literally NONE comparing say one of those two to something like ANGL. I would love your take on that. I'm considering buying some ANGL shares.

  4. Dustin Garchow

    Ok, I have to ask ..toward the end of the video you show a shot of your car savings account…is that a taxable account? If so, why would you do that? Whats the time horizon using those funds for purchase of a car? Won't the account be taxed when you go to use it? I just want to know if I'm missing something.

  5. beibeismom beibeismom

    Thank you for the analysis. Id like to hear your take on QQQ? Any drawback?

  6. Cameron M

    I had ITOT in my roth IRA when switching to vanguard from edward jones which is basically ishares version of VTI would it make sense to sell ITOT and buy the vanguard version? My current portfolio is 30%ITOT 30%VOO 10%VGT 10% VONG and 20%VXUS . My edawrd jones portfolio had 7 mutual funds and 6 etfs that was very confusing so i sold everything and set up my new portfolio listed above.Thoughts? @jarrodmorrow

  7. damion bennett

    Wow!! Thank you dude. You absolutely killed it!!

  8. Steve Jun

    What are the equivalent Fidelity funds?

  9. Miyanadal

    Great video like always!
    Most people talk about VOO (SP500 ETF – Expense ratio: 0.03%) but what about FXAIX (SP500 – Mutual fund – Expense ratio: 0.015%)? FXAIX performs slightly better than VOO over time so I am wondering why people are only talking about VOO?

  10. Carlos Ortiz

    Hola Molly! Thanks for your content Jarrad. I love the info!

  11. Uchenna Ezeokoli

    Great video. Very good explanation!

  12. Tracy Hilbert

    Hi Jarrad. Thank you for all you do.
    Question What is the difference in investing between VTI and VTSAX

  13. Karreem Johnson

    Great job explaining the difference between VTI and VOO. Easy to understand.

  14. SheetMetalSG

    I'm an avid monthly and quarterly backyard fund manager. I love charts and stuff. I can't just buy one fund I have to have like 5 and trade the worst performing one quarterly

  15. Jeanie Stout

    I like both the voo and vti. What other vanguard etf would be good for a retiree?

  16. Joseph T

    What website are these comparisons made on?

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