VOO vs. VTI — ETF comparison tool (2024)

FAQs

Which is better, VTI or 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.

Investors looking for ETFs that have beaten both the S&P 500 and the Nasdaq Composite over the last year have come to the right place. Here's a closer look at the Vanguard Growth ETF (VUG -0.98%), Vanguard Mega Cap Growth ETF (MGK -1.09%), and the Vanguard Communications Services ETF (VOX 0.29%).

VT - Volatility Comparison. The current volatility for Vanguard S&P 500 ETF (VOO) is 2.43%, while Vanguard Total World Stock ETF (VT) has a volatility of 2.57%. This indicates that VOO experiences smaller price fluctuations and is considered to be less risky than VT based on this measure.

VOO has a consensus rating of Moderate Buy which is based on 403 buy ratings, 93 hold ratings and 8 sell ratings. What is VOO's price target? The average price target for VOO is $558.18. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

As a result, both ETFs have a very low expense ratio of 0.03% and a minimum investment of $1.00. Since VTI and VOO are both ETFs, they have the same trading and liquidity, tax efficiency, and tax-loss harvesting rules.

VTI - Dividend Comparison. VOO's dividend yield for the trailing twelve months is around 1.30%, less than VTI's 1.34% yield.

Vanguard S&P offers a lower expense ratio (0.035%) than SPY (0.095%), which means lower costs for investors and potentially higher net returns over the long term. VOO might be the more economical choice for cost-conscious investors, especially those investing large sums or planning for long-term goals like retirement.

Many people pair VOO with the Vanguard Total Bond Market ETF (BND) in a broader portfolio. The fixed income ETF has $95 billion in assets and is the largest bond ETF trading in the U.S. BND has two-thirds of its assets in U.S. government bonds, with most of the remainder in investment-grade corporate bonds.

Why VT is better than VTI? ›

VT and VTI are two total stock market index funds. VT is more broad and covers developed and emerging markets. VTI, on the other hand, is designed to cover 100% of the US stock market. VT tracks the performance of the FTSE Global All-Cap Index and the CRSP US Total Market Index.

If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI. Or, you could also invest in both, for example, by putting half in VOO and half in VTI.

Average Return

In the past year, QQQ returned a total of 33.42%, which is significantly higher than VOO's 27.66% return. Over the past 10 years, QQQ has had annualized average returns of 18.69% , compared to 12.85% for VOO. These numbers are adjusted for stock splits and include dividends.

The Vanguard S&P 500 ETF (VOO -0.27%) is one of the best ways to invest in the S&P 500, which has been a pretty smart strategy over the long term. Since 1965, the S&P 500 has produced a total return of 10.2% annualized. The Vanguard ETF has an expense ratio of just 0.03%, so you get to keep most of your gains.

You can't go wrong with either the Vanguard Total Stock Market ETF or the Vanguard S&P 500 ETF. Both offer very low expense ratios and turnover rates, and the difference in their tracking errors is negligible. The overlap in their holdings ensures that you'll get very similar returns going forward.

VTI has a consensus rating of Moderate Buy which is based on 2348 buy ratings, 1219 hold ratings and 88 sell ratings.

Vanguard High Dividend Yield ETF (VYM)

The better Vanguard ETF for their needs is likely VYM, which delivers a higher 2.9% 30-day SEC yield by targeting the FTSE High Dividend Yield Index. It also charges the same expense ratio as VIG does, at 0.06%.