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.

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.

Since VTI and SPY are both ETFs, they have the same trading and liquidity, tax efficiency, and tax-loss harvesting rules. The key differences between VT and VTI are expense ratio and performance. VTI has an advantage with an expense ratio of 0.03% compared to 0.09% of SPY.

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%.

1. VanEck Semiconductor ETF. The VanEck Semiconductor ETF (SMH) tracks a market-cap-weighted index of 25 of the largest U.S.-listed semiconductors companies. Midcap companies and foreign companies listed in the U.S. can also be included in the index.

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.

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.

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.

Does VOO or VTI pay more dividends? ›

VTI - Dividend Comparison. VOO's dividend yield for the trailing twelve months is around 1.32%, less than VTI's 1.35% yield.

That means the tax hit from winning stock bets is postponed until the investor sells the ETF, a perk holders of mutual funds, hedge funds and individual brokerage accounts don't typically enjoy. The ETF tax loophole works only on capital gains, though.

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.

Almahasneh says the reason is fees. VOO charges 0.03%, while SPY charges 0.09%. With all else equal, the fund with the lower fee is more aligned with investors' best interests. The author or authors do not own shares in any securities mentioned in this article.

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.

Vanguard Total Stock Market ETF VTI offers cost-efficient, well-diversified exposure to the entire US stock market—a recipe for success over the long run. The fund tracks the CRSP US Total Market Index, which represents approximately 100% of the investable US opportunity set.