VOO vs. VTI — ETF Comparison - Stock Analysis (2024)

FAQs

VOO vs. VTI — ETF Comparison - Stock Analysis? ›

In the past year, VOO returned a total of 30.85%, which is slightly higher than VTI's 30.18% return. Over the past 10 years, VOO has had annualized average returns of 12.78% , compared to 12.16% for VTI. These numbers are adjusted for stock splits and include dividends.

Of the three, only one wins on both cost & diversification and it's the Vanguard Total Stock Market ETF (VTI). A lot of investors today prefer an S&P 500 ETF simply because it's been outperforming over the past couple years.

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 puts more weight on the consumer discretionary sector—14.4% of the portfolio's stocks are consumer discretionary, which makes this the second largest sector holding in the fund itself. On the other hand, only 10.6% of VOO's stocks fall in that category, making it the fourth largest sector holding for the fund.

Overall, VTI has an advantage in expense ratio and annual returns. While SPY has a slight edge in dividend yield, it's marginal and unlikely to make a significant difference. Whether you invest in VTI or SPY, they are both good investments with small differences in annual returns and dividend yield.

In the past year, VOO returned a total of 28.88%, which is slightly higher than VTI's 28.42% return. Over the past 10 years, VOO has had annualized average returns of 12.96% , compared to 12.38% for VTI. These numbers are adjusted for stock splits and include dividends.

VTI - Performance Comparison. In the year-to-date period, VOO achieves a 11.78% return, which is significantly higher than VTI's 10.96% return. Both investments have delivered pretty close results over the past 10 years, with VOO having a 13.05% annualized return and VTI not far behind at 12.46%.

Vanguard Total Fund VTI stock price stood at $261.84

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 2027. Vanguard Total Fund VTI will rise to $450 within the year of 2028, $500 in 2030 and $600 in 2034.

Tax Efficiency – Tie

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.

The Vanguard Total Stock Market Fund (VTI 0.14%) is, like VOO, an index ETF that's popular because of the diversification it provides at an unbeatable price.

Is VTI or VOO more stable? ›

If you prioritize stability and income: VOO's focus on large-caps and potential for higher dividends might be ideal. If you seek broader diversification and growth potential: VTI's diverse composition and exposure to smaller and mid-cap companies could be a better fit.

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is an outstanding option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

The Vanguard S&P 500 ETF (VOO 0.68%) 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.

And there's one ETF that specializes in those stocks. That's the Invesco S&P 500 GARP ETF (NYSEMKT: SPGP), which has beaten the S&P 500 in seven of the last 10 years and has steadily outperformed it over the last decade, as you can see from the chart below.

The only difference is that VTI's expense ratio is slightly lower at 0.03% compared with 0.04% for VTSAX. This is in alignment with other Vanguard comparisons, such as VOO versus VFIAX. The lower expense ratio gives VTI a slight edge in performance, especially for periods of less than 10 years.

In the past year, QQQ returned a total of 39.00%, which is significantly higher than VOO's 30.85% return. Over the past 10 years, QQQ has had annualized average returns of 18.52% , compared to 12.78% for VOO. These numbers are adjusted for stock splits and include dividends.

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.

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%.

The primary difference between SPY, VOO, IVV, and SPLG is their cost. SPLG has the lowest cost at 0.02%, followed by VOO and IVV at 0.03%, and SPY at 0.09%. If you are a cost-conscious investor, the VOO, IVV, and SPLG might make a more attractive option compared to SPY with their lower expense ratios.