In this video, I will be covering should I invest in VTI or VOO WHICH IS BETTER FOR INVESTING? VTI, VOO, ETF,

If you are one of those wondering which is better between VTI and VOO, do not worry as I have you covered in this video.

The Vanguard S&P 500 ETF (VOO) is one of the most popular stock ETFs out there. It was established in 2010. The fund seeks to track the famous S&P 500 Index, holding the 500 largest U.S. companies. This index is considered a sufficient proxy and barometer for “the market” in the U.S. The mutual fund equivalent for VOO is VFIAX.

The Vanguard Total Stock Market ETF (VTI) provides similar broad exposure to the U.S. stock market, with the addition of small- and mid-caps. It was established in 2001. The fund seeks to track the CRSP US Total Market Index. This ETF holds over 3,500 U.S. stocks across all cap sizes. Specifically, VTI is comprised of roughly 82% large-cap, 12% mid-cap, and 6% small-cap stocks. In other words, VOO comprises roughly 82% of the broader VTI. Put more simply, VOO is already inside of VTI. The mutual fund equivalent for VTI is VTSAX.

Thus, the only real difference between VOO and VTI is that VTI includes small, mid, and large cap stocks, while VOO is only large-cap stocks. Since VTI is market cap weighted, meaning weighted by the size of the constituent stocks, about 82% of VTI’s weight is VOO, with the other 18% being those smaller companies. That 18% is about 3,000 stocks.

Since small- and mid-cap stocks tend to be more volatile than large-caps, VTI should be – and has been – slightly more volatile than VOO. Because VOO holds about 500 stocks and VTI holds about 3,500, VTI can also be considered more diversified than VOO.


Check out both funds here:
VTI- https://finance.yahoo.com/quote/VTI?p=VTI&.tsrc=fin-srch
VOO- https://finance.yahoo.com/quote/VOO?p=VOO&.tsrc=fin-srch


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DISCLAIMERS & DISCLOSURES

This content is for education and entertainment purposes only. Tray does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.