Is Vanguard ETF VTI better than VOO? (2024)

Is Vanguard ETF VTI better than VOO?

VTI is a total U.S. market fund and holds more than 3,500 stocks. VTI is better diversified and benefits from small and mid-cap stocks that grow into large caps. VOO is less diversified, tracking the performance of the S&P 500 Index. VOO excludes small and mid-cap stocks.

Should I choose VTI or VOO?

Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI.

Is VOO or VTI more tax efficient?

Generally, ETFs will have a slight edge from a tax efficiency perspective. ETFs tend to distribute comparatively fewer capital gains to shareholders – these same gains are simply more challenging to manage efficiently from a mutual fund. Overall, VOO and VTI are considered to have the same level of tax efficiency.

Does VOO or VTI pay more dividends?

VTI - Dividend Comparison. VOO's dividend yield for the trailing twelve months is around 1.36%, less than VTI's 1.39% yield.

Does VTI outperform spy?

The table below shows the total annual returns between VTI and SPY. The table above shows that SPY outperformed VTI in 8 out of 10 years from 2014 to 2023. On average, SPY outperformed VTI by an average of 1.01%. VTI only outperformed in 2 years, from 2014 to 2023, by an average of 1.75%.

Should I switch from VOO to VTI?

Investor Preferences: VOO is ideal for those seeking alignment with the performance of large-cap companies in the S&P 500, while VTI suits investors looking for more comprehensive market exposure, including smaller companies with potential for growth.

Why is VTI so popular?

Benefits of Vanguard Total Stock Market ETF (VTI)

VTI is an extremely diversified fund. Its large amount of holdings reflect the entire universe of investable U.S. securities. The fund has exposure to small-cap stocks which can be more volatile than mid- or large-cap holdings.

Should I invest all my money in VTI?

Whether you should buy it depends on your investment goals. Investors looking for an easy way to add U.S. equity exposure to their portfolios will probably find Vanguard Total Stock Market ETF (VTI 0.15%) of interest. That said, while it does some things very well, it does others rather poorly.

What is the average return of VOO vs VTI?

Average Return

In the past year, VOO returned a total of 28.92%, which is slightly higher than VTI's 28.52% return. Over the past 10 years, VOO has had annualized average returns of 12.80% , compared to 12.14% for VTI. These numbers are adjusted for stock splits and include dividends.

Is VTI a good long term investment?

If you're looking for an ETF with a low expense ratio and an attractive annual return rate, VTI might be a good pick. The expense ratio is only 0.03%, and the 10-year annual average return rate is above 12%.

Is it wise to invest in VOO?

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Which S&P 500 ETF is best?

Should I invest in QQQ or VOO?

VOO - Performance Comparison. In the year-to-date period, QQQ achieves a 8.10% return, which is significantly lower than VOO's 9.64% return. Over the past 10 years, QQQ has outperformed VOO with an annualized return of 18.76%, while VOO has yielded a comparatively lower 12.91% annualized return.

Why VTI is better than SPY?

For buy-and-hold investors, long-term performance of passive index funds is largely determined by their fees. And VTI offers a small advantage on this front due to its rock-bottom 0.03% expense ratio (compared to SPY's 0.09%).

Does VTI pay dividends?

Vanguard Total Stock Market ETF (VTI)

VTI has a dividend yield of 1.03% and paid $2.68 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

What is the 10 year return on VOO vs VTI?

Over the past 10 years, VTI has underperformed VOO with an annualized return of 12.26%, while VOO has yielded a comparatively higher 12.91% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.

Is there a downside to investing in ETFs?

For instance, some ETFs may come with fees, others might stray from the value of the underlying asset, ETFs are not always optimized for taxes, and of course — like any investment — ETFs also come with risk.

Which ETF is the best?

What will VTI be worth in 5 years?

According to the latest long-term forecast, Vanguard Total Fund VTI price will hit $300 by the middle of 2025 and then $350 by the middle of 2026. Vanguard Total Fund VTI will rise to $400 within the year of 2027, $450 in 2028, $500 in 2029, $600 in 2032 and $700 in 2035.

Is VTI good for Roth IRA?

VTI is an excellent choice because of its low expense ratio, which stands at just 0.03%, making it one of the least expensive ETFs on the market today. Owning VTI helps reduce sector-specific risks, as it holds a diversified stock portfolio. With VTI, you can avoid the risk of keeping all your funds in one area.

Who owns the most shares of VTI?

These institutions hold a total of 446,055,264 shares. Largest shareholders include Vanguard Group Inc, Betterment LLC, Us Bancorp \de\, Wealthfront Advisers Llc, LPL Financial LLC, Bank Of America Corp /de/, Morgan Stanley, WealthNavi Inc., Northern Trust Corp, and Allworth Financial LP .

Should I put most of my money in ETFs?

You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.

Is it safe to put all your money in an ETF?

ETFs can be safe investments if used correctly, offering diversification and flexibility. Indexed ETFs, tracking specific indexes like the S&P 500, are generally safe and tend to gain value over time. Leveraged ETFs can be used to amplify returns, but they can be riskier due to increased volatility.

Should I just put my money in ETF?

For most individual investors, ETFs represent an ideal type of asset with which to build a diversified portfolio. In addition, ETFs tend to have much lower expense ratios compared to actively managed funds, can be more tax-efficient, and offer the option to immediately reinvest dividends.

What is the real return of VTI?

Vanguard Total Stock Market (VTI): Historical Returns

In the last 30 Years, the Vanguard Total Stock Market (VTI) ETF obtained a 10.49% compound annual return, with a 15.52% standard deviation.