VOO vs. VTI — ETF comparison tool (2024)

FAQs

How does VOO compare to VTI? ›

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.

Correlation. The correlation between VT and VOO is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements.

VTI: Offers broader diversification by including mid-cap and small-cap stocks in addition to large-cap stocks. This can provide exposure to a wider range of sectors and market segments. VOO: Concentrates on large-cap stocks, particularly those in the S&P 500.

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%.

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.

VT Dividend Information

VT has a dividend yield of 2.03% and paid $2.28 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.

VT - Performance Comparison. In the year-to-date period, VOO achieves a 11.88% return, which is significantly higher than VT's 9.19% return. Over the past 10 years, VOO has outperformed VT with an annualized return of 12.76%, while VT has yielded a comparatively lower 8.61% annualized return.

What are the three best ETFs? ›

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.

Both have the same expense ratio and similar dividend yield, so you should choose whichever one you prefer based on the fund's strategy. If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI.

Vanguard Total Stock Market ETF offers advantages over the S&P 500 index due to its inclusion of mid and small-cap companies. VTI provides exposure to higher growth potential at a potentially lower valuation compared to the S&P 500 index.

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. The fund has a beta of 1.0 when compared to the larger market.

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