VOO vs. VTI — ETF Comparison - Stock Analysis (2024)

FAQs

How is VOO compared to VTI? ›

In the past year, VOO returned a total of 24.48%, which is slightly higher than VTI's 24.08% return. Over the past 10 years, VOO has had annualized average returns of 12.50% , compared to 11.87% for VTI. These numbers are adjusted for stock splits and include dividends.

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.

Over the long run, they do compound—those fee differences—and investors have been putting a lot more money into VOO versus SPY. That is the reason why we view VOO slightly better than SPY. And that is just the basic approach, which is the lower the investor can pay, the better the investment is.

VTI is a total U.S. market fund and holds more than 3,500 stocks. VTI is better diversified and benefits from small and mid-cap stocks that grow into large caps. VOO is less diversified, tracking the performance of the S&P 500 Index. VOO excludes small and mid-cap stocks.

That being said, VOO has a total return of 205.67% compared to VTI of 187.94% over the last 10 years. VTI even had times of slightly more drawdown, but for the most part, the price return is very similar.

Since its inception over 20 years ago in 2001, VTI has returned 8.1% on an annualized basis, making this fund a consistent long-term performer.

The Vanguard Total Stock Market ETF is a popular way to save for retirement or long-term growth. The fund represents a snapshot of the stock market, allowing investors to track the gains of the market as a whole rather than invest in individual shares.

What is better than VTI? ›

Morningstar Rating. VOO earns a five-star rating from Morningstar, while VTI earns a three-star rating. Morningstar is an investment research and management company. Their star-ratings are backward-looking metrics based on an investment's past performance.

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.

VOO is managed by Vanguard, a company renowned for its investor-friendly policies and emphasis on low-cost index investing. Due to its popularity among traders, SPY enjoys higher liquidity. This is evident in its narrower bid-ask spreads, which makes it a favourite among day traders and institutional investors.

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

Vanguard S&P 500 ETF (VOO)

But VOO offers great liquidity as well as a rock-bottom expense ratio. As a result, this elegant long-term ETF gives you a piece of leaders including Apple Inc. (AAPL), Microsoft Corp. (MSFT) and others in one single holding.

VOO has a conensus rating of Moderate Buy which is based on 399 buy ratings, 98 hold ratings and 8 sell ratings. What is VOO's price target? The average price target for VOO is $529.99. This is based on 505 Wall Streets Analysts 12-month price targets, issued in the past 3 months.