In the last section, I have backtested a 10+ year performance of two portfolios of VTI vs. SCHB. It also includes mid-and small-cap stocks in addition to large-cap names. What is striking immediately, is how much worse VTI tends to perform then the market turns south as in 2018 and 2020. The number of stocks is irrelevant when it is market weighted. 0.08%. So, which of these two funds is really better? They often go down significantly during market corrections. However, I would like to make a case for the additional diversification in small-cap companies that VTI provides. For example, the top 10 holdings of the popular Vanguard S&P 500 ETF (NYSEMKT:VOO) make up roughly 23% of the fund's assets. And with VOO vs. VTI this is a close call. In this part, we’ll look at the funds’ volatility and maximum drawdown over the period from 2011 to the present day. This explains why the index has 508 stocks, not 500. Hello, after alot of research I realized its pointless in a way to have VTI and VOO together, but I am still diversifying either way with VTI or VOO as a choice. When I first started investing in Vanguard’s index funds I had no clue what the difference was between VOO and VTI. View Historical Risk Statistics for Vanguard Total Stock Market ETF (VTI). That’s a difference of more than $1,000. What an excellent deal for getting exposure to pretty much the entire stock market in return! What Are the Average Stock Market Returns by Month? VOO vs. VTI: Head-To-Head ETF Comparison The table below compares many ETF metrics between VOO and VTI. This is not true at all. If you want to invest in a very broad mix of American stocks (VTI), American IT stocks (VGT), or just the 500 largest American companies (VOO), then yes, they’re just about the best ETFs to do so. VOO is a subset of VT: 100& of VOO's holdings are within VTI's 14.9% of VTI's holdings are in VOO. SPY vs. VTI comparisons: including fees, performance, dividend yield, holdings and technical indicators to make a better investment decision. This makes sense since mid-cap and small-cap stocks tend to be more volatile than large-cap stocks. Close. Vanguard’s Total Stock Market ETF (VTI) is similar to VOO in many ways, but the main difference is that it holds a much broader range of stocks. Starting with a comparison of the differences in key facts and composition we have seen how VOO and VTI differ on a more detailed level. VOT. VOO has had slightly better returns in the past, but VTI is more diversified and provides broader exposure to the US stock market. In the past few years, VOO has had better investment returns and greater price stability than VTI. In the second part I’ll conduct a risk analysis examining each fund’s volatility and drawdown as well as their annual returns.eval(ez_write_tag([[250,250],'mrmarvinallen_com-medrectangle-3','ezslot_9',107,'0','0']));eval(ez_write_tag([[250,250],'mrmarvinallen_com-medrectangle-3','ezslot_10',107,'0','1'])); The Vanguard S&P 500 ETF (VOO) tracks – as the name suggests – Standard & Poor’s S&P 500 index. However, splitting the U.S. and non-U.S. parts of a portfolio can be beneficial. Stocks vs. Bonds: Differences and Similarities. Both VOO and VTI are ETFs. Overall, the biggest issue with the data points we have is that VOO has not lived through an extended bear market yet. Somewhat. VXF. Although VTI has over 3000 more stocks than VOO, these are only a small percentage of the fund’s holdings because their market caps are so small. This index aims to replicate and mirror the performance of the entire U.S. stock market and follows more than 3,500 companies. VOO has a lower 5-year return than VTI (14.32% vs 14.43%). eval(ez_write_tag([[300,250],'mrmarvinallen_com-large-mobile-banner-2','ezslot_15',114,'0','0']));As mentioned before, the biggest caveat here is the limited data available for VOO. In turn, … Source: Vanguard VOO vs VTI: key findings and overlap. The dividend yield for VOO (2.07%) is slightly higher than that of VTI (1.97%), which could be a small consideration for investors who prefer index funds with higher yields. Millions of people invest in their funds, and they collectively have over $5 trillion in assets under management. Both VV and VTI are ETFs. On an annual basis, this adds up to a difference of 0.57%. Posted by 3 months ago. VTI. Today, we’ll examine two giants of the ETF world: VOO vs. VTI. Both VTI and VT are ETFs. The past decade has seen an unprecedented bull market like nothing we have seen before which has obviously been very advantageous for large-cap growth. Overexposure to FAANGs . In this section we will compare the VOO vs VTI. VTI tracks performance of the CRSP US Total Market Index, while VOO invests only in stocks in the S&P … Compare fees, performance, dividend yield, holdings, technical indicators, and many other metrics to make a better investment decision. VT holds a whopping 7,954 stocks with a median market value of $42.1 billion. Its annual fee of … Well, just looking at the performance the answer seems obvious: VOO. However, with large-cap companies making up over 85%, it can be safely said that VOO is not the fund for you if you’re looking for some small-cap exposure.eval(ez_write_tag([[336,280],'mrmarvinallen_com-banner-1','ezslot_5',110,'0','0'])); VTI’s market capitalization looks a bit more balanced. VOO and VTI both have an expense ratio of 0.03% which is one of the lowest on the market. VT and VOO vs VTI and VGT. Both of them provide exposure to the US stock market: This article examines the differences between VOO and VTI and which one is likely to be a better investment. Both of these indices are widely tracks among ETFs as becomes apparent when looking at the top 5 ETFs by market cap: VOO and VTI both have around $133B in assets under management and are in a constant battle between ranks three and four among the top 5. Posted by 3 months ago. VV has a higher expense ratio than VTI (0.04% vs 0.03%). We will compare both of these ETFs based on data. [Data: Morningstar] The correlation in returns between the S&P 500 and the Total Stock Market Index is very, very high. This is Standard & Poor’s market-cap index of the 500 largest US companies that are publicly traded. The Vanguard S&P500 ETF (VOO) is one of the biggest index funds that track the S&P500, with $500 billion in assets under management. VV has a higher 5-year return than VTI (14.77% vs 14.43%). In this article, I want to take a different approach. Vanguard Total Stock Market. Comparing the annual returns of VOO and VTI might highlight and underlines some of the variances in volatility and drawdowns we have seen above: As VOO was only issued in 2011 we, unfortunately, have much fewer data to compare VTI to. This is a summary of the key differences between VOO and VTI: Both ETFs have the same top 10 stock holdings: For VOO, the top 10 stocks amount to 24.8% of the ETF’s holdings. ETF vs Index Fund. 0.05%. Minimalism/The overlap between the two. Due to PRIIPs many European investors can’t access US domiciled funds. See how 9 model portfolios have performed in the past. In this post, I am going to focus on the key difference between VTI and SCHB. For this reason, it is impossible to say with any certainty which one will be the better investment moving forward. It also has one of the lowest expense ratios, making it very popular among passive index investors. Below is the comparison between VOO and VTI. There are some funds with a similar expense ratio such as SCHB also at 0.03% or Fidelities fund’s which offer fee-free ETFs as loss leaders. VTV. Vanguard Extended Market. We’ll look at the annual returns first and then back-text a portfolio of $10,000 to see which of these funds comes out ahead. 1 year ago. We’ll also see how they differ in composition and industry exposure. Your portfolio’s exposure to different industries can play a major role in diversifying your assets and making sure you have balanced market exposure. Which is better? VT holds a whopping 7,954 stocks with a median market value of $42.1 billion. On an annual basis, this adds up to a difference of 0.57%. VOO has the least industry exposure to the Basic Materials, Real Estate, and Energy sector. Close. VTI and VOO are both ETFs. VTI vs. SCHB – Overview. Passive investing with VTI and VTSAX. Both funds, VOO and VTI have an expense ratio of 0.03%.eval(ez_write_tag([[468,60],'mrmarvinallen_com-box-3','ezslot_4',106,'0','0'])); Even though both funds look and perform similarly, let’s explore some of the more intricate differences! We’ll also see if and how they differ in max. VT vs. VTI: Differences in Composition If you want to own only the biggest and safest stocks, choose VOO. I believe that small-cap companies can ply a crucial role in more arduous economic times than those that we have experiences in the past years. Research shows that passively managed index funds provide higher returns than over 90% of active professional fund managers. The small and mid cap stocks in VTI slightly more volatile and more risky than VOO but also will theoretically result in higher returns over the length of a many-decades investing career. 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