VOO vs VTI: Vanguard S&P 500 vs Total Stock Market ETF
VOO vs VTI: The Vanguard S&P 500 Index ETF vs Total Stock Market Index ETF. VOO and VTI are among the two most popular ETFs you can track the US Stock Market and build wealth over time... but they do have slight differences and after watching this video, you'll understand each one in great detail to go out and master your own portfolio. - Enjoy!
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Free Tools Used In This Video:
Portfolio Visualizer (Backtest Portfolio): https://shorturl.at/m8QeN
ETF Overlap Tool: https://www.etfrc.com/funds/overlap.php
ETF Comparison: https://etfdb.com/tool/etf-comparison...
Vanguard ETF Search: https://investor.vanguard.com/investm...
Plenty of data came straight from Vanguard where you can learn a great deal through a summary prospectus.
CRSP US Total Market Index PDF: https://shorturl.at/rQ1yq
S&P 500 (S&P Dow Jones Indices Info): https://shorturl.at/3GNPr
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⏰ Timestamps ⏰
00:00 Intro
00:31 VOO & VTI Overview
05:16 Key Differences
08:36 Which Is Right For You?
What is the Vanguard S&P 500 ETF (VOO)?
This ETF tracks the S&P 500 Index which means when you purchase VOO, you are buying into 500 of the largest publicly traded companies that are based in the US all within one purchase. The S&P 500 has been tracked since 1928 and was officially launched in 1957, where it has averaged a 9.90% all the way back to 1928.
What is the Vanguard Total Market ETF (VTI)?
This fund tracks the CRSP US Total Market index where instead of just 500 large cap companies, you can now investing into nearly 4000 US companies that range from large, mid, small, to even micro cap size. This allows you to gain full exposure to the US economy all within one purchase.
What about Vanguards Index Mutual Funds (VFIAX and VTSAX)?
As mentioned, both of these are also great investments as they reflect the exact same indexes. They are nearly the exact same but due to them being mutual funds, you'll need to have a Vanguard account to invest into them. Don't worry, VOO or VTI will still provide everything you need as they are nearly the exact same but now through an ETF, you can purchase through on nearly any investment platform. Note: you can potentially own a vanguard mutual fund on another platform like Fidelity but you will have to pay a fee, just don't do that. Also personal preference, but I prefer to only use Mutual Funds in a tax advantaged account like the Roth IRA, worst case, as ETFs are known to provide more control over your taxes. Although with Index Funds, this shouldn't be a concern.
Why choose one over the other?
As you'll learn in this video, an investment like VOO has achieved slightly better results over time, but limits the exposure you have to your portfolio. When you buy VTI, VOO actually has an 87% overlap with the fund so you can still get your S&P 500 exposure. Stick to the end to see some of the best approaches you may be interested to take based on your investing goals!
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Disclaimer: This video contains links through which Danny Sully may be compensated when you click on or are approved for offers. The information in this video was not provided by any of the companies mentioned, and has not been reviewed, approved, or otherwise endorsed by any of these entities. The information provided in this video is accurate as of its posting date, though some of the offers mentioned may no longer be active.
This content is for entertainment only and does not constitute legal, tax, or financial advice. It is for general informational purposes. The presenter is not a licensed professional. Viewers should consult their attorney, accountant, or financial advisor for advice on specific legal, tax, or financial issues.
