VTI vs VOO: Comparing the Top Vanguard ETF Index Funds

by | Oct 16, 2023 | Vanguard IRA | 3 comments

VTI vs VOO: Comparing the Top Vanguard ETF Index Funds




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In this video, we will compare two well-known Vanguard ETF Index Funds: VOO and VTI. Both of these funds are based on traditional index funds and hold similar investments. VOO is the Vanguard S&P 500 Index Fund, while VTI is the Vanguard Total Stock Market Index Fund. We will explore the similarities and differences between these two funds and determine which one may be better for your investment needs.

#VanguardIndexFunds #VTI #VOO

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.
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.
The more important thing is to just get your money invested , 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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In the world of ETF (Exchange-Traded Funds) investing, Vanguard has always been a well-respected name. Known for their low-cost index funds, Vanguard offers investors a wide range of options to choose from. Two such funds that often find themselves pitted against each other are VTI and VOO. Let’s dive into the battle of the best Vanguard ETF index funds.

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First up, we have VTI, or Vanguard Total Stock Market ETF. As the name suggests, this fund aims to replicate the performance of the entirety of the U.S. stock market. VTI holds a vast number of stocks across various sectors, giving investors exposure to over 3,500 individual companies. By investing in VTI, investors are essentially owning a small piece of the entire U.S. stock market, making it a highly diversified option. This diversity can be seen as both a strength and a weakness. On one hand, it offers investors market-wide exposure, spreading out risk. On the other hand, it may lack the focus that some investors prefer.

On the other side of the ring, we have VOO, the Vanguard S&P 500 ETF. As the name suggests, this fund tracks the performance of the S&P 500, which consists of the 500 largest publicly traded companies in the U.S. VOO provides investors with exposure to large-cap stocks, with a focus on blue-chip companies that are considered to be leaders in their respective industries. By investing in VOO, investors are narrowing their focus to a select group of top companies, potentially offering higher growth potential. However, this comes with increased risk, as a downturn in any of these key companies could have a significant impact on the fund’s performance.

When it comes to expenses, both VTI and VOO boast low expense ratios, with VTI currently at 0.03% and VOO at 0.03%. They are both highly economical options for investors looking to minimize their costs and maximize their returns. In terms of liquidity, both funds are extremely liquid, making it easy for investors to enter and exit positions without incurring significant trading costs.

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So, which one is the better option? The answer depends on the investor’s goals and preferences. VTI provides broader exposure to the entire U.S. stock market, making it a suitable choice for long-term, diversified investing. It offers the potential for steady growth over time. On the other hand, VOO focuses on the top-performing companies in the U.S., making it a preferred choice for investors who want concentrated exposure to large-cap stocks.

Ultimately, both VTI and VOO are excellent Vanguard ETF index funds that offer investors the opportunity to invest in the U.S. stock market at a low cost. Whether an investor chooses VTI or VOO depends on their risk tolerance, investment goals, and individual preferences. It is always advisable to conduct thorough research and seek professional advice before making any investment decisions.

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3 Comments

  1. J Santos

    VTI and VXUS = total world stock market 🙂 set and forget

  2. Alec Strahl

    Your missing VT

  3. Mithos Yggdrasill

    I have both, VOO in my Roth ira and VTI in my normal brokerage. The ultimate set it and forget it form of investing.

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