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 27.99%, which is slightly higher than VTI's 27.65% return. Over the past 10 years, VOO has had annualized average returns of 12.63% , compared to 12.03% for VTI. These numbers are adjusted for stock splits and include dividends.

VTI - Performance Comparison. In the year-to-date period, VOO achieves a 11.30% return, which is significantly higher than VTI's 10.17% return. Both investments have delivered pretty close results over the past 10 years, with VOO having a 12.68% annualized return and VTI not far behind at 12.06%.

On average, SPY outperformed VTI by an average of 1.01%. VTI only outperformed in 2 years, from 2014 to 2023, by an average of 1.75%. Overall, SPY has a slight advantage when it comes to annual returns, with consistent outperformance over the last 10 years. The table below will show the dividend yield for both ETFs.

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.

Considerations: If you prefer broad market exposure and want to include mid-cap and small-cap stocks in your portfolio, VTI might be more suitable. If you specifically want exposure to the largest U.S. companies and are comfortable with a more concentrated approach, VOO could be a good choice.

VOO has a consensus rating of Moderate Buy which is based on 406 buy ratings, 91 hold ratings and 7 sell ratings. What is VOO's price target? The average price target for VOO is $544.87. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

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.

In the last 30 Years, the SPDR S&P 500 (SPY) ETF obtained a 10.35% compound annual return, with a 15.12% standard deviation.

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.

Is VTI a good long-term investment? ›

Ultimately, both VTI and VTSAX can be good investment options for long-term investors seeking broad exposure to the U.S. equity market.

The Vanguard S&P 500 ETF (VOO) is an option for investors looking to track the S&P 500 Index, which includes 500 of America's large-cap companies. It is favored by both institutions and individual investors for its ability to offer a mix of growth, value, and diversification in an investment.

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.

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.

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.

The Vanguard Total Stock Market Fund (VTI -0.73%) is, like VOO, an index ETF that's popular because of the diversification it provides at an unbeatable price.