VT vs VTI | ETF Performance Comparison Tool (2024)

FAQs

VT vs VTI | ETF Performance Comparison Tool? ›

Average Return

VT has a higher expense ratio than VTI by 0.04%. This can indicate that it's more expensive to invest in VT than VTI. VT targets investing in Global Equities, while VTI targets investing in US Equities. VT is managed by Vanguard, while VTI is managed by Vanguard.

Expense Ratio – VTI

VTI has an expense ratio of 0.03% compared to an expense ratio of 0.08% for VT.

The Vanguard Total Stock Market ETF is a well-diversified exchange-traded fund (ETF) that holds over 3,700 stocks. The ETF's top sector is technology, with a 27.7% weighting, while Microsoft, Apple, and Alphabet are its top three holdings, making up 13.2% of the ETF.

VTV is more expensive with a Total Expense Ratio (TER) of 0.04%, versus 0.03% for VTI. VTV is up 14.55% year-to-date (YTD) with +$4.04B in YTD flows. VTI performs better with 17.57% YTD performance, and +$21.57B in YTD flows.

In the past year, VT returned a total of 23.48%, which is lower than VTI's 27.56% return. Over the past 10 years, VT has had annualized average returns of 8.90% , compared to 12.33% for VTI. These numbers are adjusted for stock splits and include dividends.

VTI has an advantage with an expense ratio of 0.03% compared to 0.09% of SPY. Another key difference is the performance in annual returns and dividend yield. SPY has a clear advantage in annual returns; it has outperformed VTI by an average of 1% in 8 of the last ten years.

Key Features And Composition. Key features of VTI include: Broad diversification: VTI is well diversified, with more than 3,600 stocks representing all aspects of the U.S. equity market. This diversification insulates shareholders from downturns affecting one segment or one style of equities.

Summary. Many investors believe they are well-diversified by owning a large number of stocks, but this is not necessarily true. The Vanguard Total Stock Market Index Fund ETF owns over 3,700 stocks, which is excessive and redundant.

If you prefer a more diversified portfolio, VTI may be a better option, as it includes all VOO's holdings, plus smaller companies. If you're comfortable with the concentration on larger-cap companies or are building a broader portfolio to include other funds, VOO can be a suitable choice.

What percent of VTI is Nvidia? ›

A "good" expense ratio will be determined by a variety of factors, such as if the fund is actively managed or passively managed. Generally, for an actively managed fund, good expense ratios range between 0.5% and 0.75%. Anything above 1.5% is considered high.

As of August 2024, in the previous 30 Years, the Vanguard Total Stock Market (VTI) ETF obtained a 10.53% compound annual return, with a 15.55% standard deviation.

VOO: The Vanguard S&P 500 ETF

VOO, on the other hand, focuses on the 500 largest companies in the United States, known as the S&P 500. This includes industry leaders like Apple, Microsoft, and Amazon. VOO has slightly outperformed VTI in recent years, boasting a 10-year average annual return rate of 12.61%.

If you are looking for broader market exposure and are comfortable with a mix of growth and value stocks, VOO may be your go-to option. On the other hand, if you are a value investor seeking long-term gains from undervalued large-cap stocks, VTV could be a better fit for your portfolio.

Popular broad-based index ETFs include the SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF Trust (DIA), and Vanguard Total Stock Market Index Fund ETF Shares (VTI).

Alternatives to VTI and ITOT

One ETF I favor is the Schwab U.S. Broad Market ETF (SCHB), which tracks the Dow Jones U.S. Broad Stock Market Index. Interestingly, this was the same index used by VTI until April 22, 2005.

Bottom Line. VTI and VOO are both good picks for the long-term investor in need of a core U.S. equity fund. The main difference between the two is VTI's small and mid-cap holdings. If that exposure is appealing, VTI is your choice.

Has high potential for growth, but also high risk; share value may swing up and down more than U.S. or international stock funds. Only appropriate for long-term goals.