VOO Vs. VTI: Which ETF Is A Better Investment?

VTI: Vanguard Total Stock Market ETF

  • Assets: $840.9 billion
  • Holdings: 3551 stocks
  • Dividend Yield: 1.95%
  • Expense Ratio: 0.03%

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.

It follows the CRSP US Total Market Index, which includes all the stocks in the S&P500 plus over 3000 additional stocks. This represents the entire US stock market.

Unlike ETFs that follow the S&P500, VTI also holds many mid-cap and small-cap stocks.

For this reason, VTI is considered to provide broader exposure to the US stock market and is more diversified. However, because it is weighted by market cap, the biggest US companies also constitute a very large percentage of the ETF’s holdings.

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.

VOO vs. VTI: Key differences

This is a summary of the key differences between VOO and VTI:

Index S&P500 CRSP US Total Market
Assets $500.9 billion $840.9 billion
Stocks 508 3551
Dividend Yield 2.03% 1.95%
Expense Ratio 0.03% 0.03%

Both ETFs have the same top 10 stock holdings:

  1. Apple (AAPL)
  2. Microsoft (MSFT)
  3. Alphabet (GOOGL)
  4. Amazon (AMZN)
  5. Facebook (FB)
  6. Berkshire Hathaway (BRK-B)
  7. Johnson & Johnson (JNJ)
  8. JP Morgan (JPM)
  9. Visa (V)
  10. Procter & Gamble (PG)

For VOO, the top 10 stocks amount to 24.8% of the ETF’s holdings. For VTI, the same top 10 stocks amount to 20.7% of the holdings.

So, even though VTI is more diversified than VOO with exposure to mid-caps and small-caps, the biggest companies are still responsible for most of the returns.

VOO vs. VTI: Performance

The biggest holdings are the same for VOO and VTI, so their performance in the past has been similar but not identical.

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Ayelet Wolf 1 year ago Member's comment

Has anyone looked into $SPLG? Thoughts?

Kurt Benson 1 year ago Member's comment

I’ll look into both $QQQ and $SPLG but can’t comment on either yet.

Backyard Hiker 1 year ago Member's comment

Does @[Kris Gunnars](user:91956) have any thoughts?

Andrew Armstrong 1 year ago Member's comment

Hmm, from a up and down perspective both are the same, the only difference is $VTI is index that matches the whole US market, and $VOO is an index that matches only the 500 companies. If you compare them, they look the same. As they go up and down in similar percentage, it dosen't really matter which one you pick. This is my opinion from my humble experience.

Dick Kaplan 1 year ago Member's comment

Nice explanation. I prefer $VTI when combined with $BND and $VXUS. $VOO I always purchase alone.

Wannabe Warren 1 year ago Member's comment

I am going $QQQ better.