Is VTI or VOO a better long term 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 .

Is VOO or VTI more tax efficient?

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 .

What is the 10 year return on VOO vs VTI?

Average Return In the past year, VOO returned a total of 28.70%, which is slightly higher than VTI's 28.46% return. Over the past 10 years, VOO has had annualized average returns of 12.79% , compared to 12.22% for VTI . These numbers are adjusted for stock splits and include dividends.

Is VTI good for long term?

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 .

Is VOO a good long-term investment?

Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.

Should I invest in VOO right now?

Currently there's no upside potential for VOO, based on the analysts' average price target. Is VOO a Buy, Sell or Hold? VOO has a conensus rating of Moderate Buy which is based on 400 buy ratings, 98 hold ratings and 7 sell ratings.

Why is VOO better than VTI?

VTI offers a broader scope, encompassing a comprehensive representation of the U.S. market with exposure to large-, mid-, and small-cap equities diversified across growth and value styles. On the other hand, VOO is more concentrated, focusing solely on large-cap stocks from the S&P 500.

Is VOO riskier than VTI?

Vanguard S&P 500 ETF (VOO) and Vanguard Total Stock Market ETF (VTI) have volatilities of 3.92% and 3.98%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same .

What is better than VOO?

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 .

What will VTI be worth in 5 years?

Vanguard Total Fund VTI stock price stood at $259.44 According to the latest long-term forecast, Vanguard Total Fund VTI price will hit $300 by the end 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.

Is ETF or index fund better for long-term investment?

The differences between the two tend to be small; in fact, index funds and ETFs are often (but not always) the same thing. Thus, which one you choose is less important than the choice to start investing . In doing so, you take advantage of low fees and diversification, and an investment that will grow over time.

What is VTI average return for 30 years?

In the last 30 Years, the Vanguard Total Stock Market (VTI) ETF obtained a 10.29% compound annual return, with a 15.55% standard deviation.

VOO vs VTI: Which ETF is the Winner for Long-Term Investors (2024)

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As an investor, choosing the right exchange-traded fund (ETF) can be a daunting task, especially if you’re planning to hold onto it for the long term. Two of the most popular ETFs in the market today are the Vanguard S&P 500 ETF (VOO) and the Vanguard Total Stock Market ETF (VTI). While both funds offer exposure to the U.S. stock market, there are some key differences between them that can impact their performance over the long term. In this article, we’ll take a closer look at VOO vs VTI and help you determine which ETF may be the better choice for long-term investors. From analyzing their underlying indexes to comparing their expense ratios and historical performance, we’ll provide the insights you need to make an informed decision for your portfolio. So, let’s dive in and see which ETF comes out on top in this battle for long-term investment success.

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VOO vs VTI: Which ETF is the Winner for Long-Term Investors (1)

VOO vs VTI: Which ETF is the Winner for Long-Term Investors (2)

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Should I invest in VOO?

Are you looking for a way to gain exposure to the U.S. stock market without having to buy individual stocks? If so, you might want to consider the Vanguard S&P 500 ETF (VOO).

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What is VOO?

VOO is an exchange-traded fund that tracks the performance of the , which includes 500 of the largest publicly traded companies in the U.S. This means that when you invest in VOO, you’re essentially investing in a diversified portfolio of large-cap U.S. stocks.

One of the main advantages of investing in VOO is that it allows you to gain exposure to the U.S. stock market with just one investment. Instead of having to buy shares in each of the 500 companies that make up the S&P 500 index, you can invest in VOO and get the same level of diversification in one simple transaction.

Another advantage of VOO is that it is a low-cost ETF. Its expense ratio is just 0.03%, which means that for every $10,000 you invest, you’ll pay just $3 in annual fees. This makes VOO one of the cheapest ETFs available in the market.

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How does VOO work?

VOO works by investing in all of the stocks that make up the S&P 500 index in the same proportion as they are weighted in the index. For example, if Apple Inc. represents 5% of the S&P 500 index, then VOO will allocate 5% of its assets to Apple. Below you can see the top 10 holdings of VOO as of today.

The goal of VOO is to replicate the performance of the S&P 500 index as closely as possible. This means that if the S&P 500 index goes up, VOO should go up by a similar amount. Conversely, if the index goes down, VOO should go down by a similar amount.

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VOO vs VTI: Which ETF is the Winner for Long-Term Investors (4)

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Why invest in VOO?

Investing in VOO can be a great way to gain exposure to the U.S. stock market with a low-cost, diversified investment. VOO has a long-term track record of delivering solid returns to investors and has consistently outperformed the majority of active fund managers. The S&P Indices versus Active (SPIVA) scorecard, which tracks the performance of actively managed funds against their respective category benchmarks, recently showed 79% of fund managers underperformed the S&P 500 last year. Below you can see the historical performance of VOO from 2014 to 2022.

VOO vs VTI: Which ETF is the Winner for Long-Term Investors (5)

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Should I invest in VTI?

If you’re interested in investing in the stock market, you may have come across the term VTI. VTI is an exchange-traded fund (ETF) that tracks the performance of the entire U.S. stock market. In this article, we’ll explain what VTI is, how it works, and why it might be a good investment for your portfolio.

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What is VTI?

VTI, or the Vanguard Total Stock Market ETF, is an ETF that tracks the performance of the CRSP US Total Market Index. This index includes nearly all U.S. stocks, including large, mid, and small-cap companies. By investing in VTI, you’re essentially investing in the entire U.S. stock market. Below you can see the top 10 investments inside VTI as of today.

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VOO vs VTI: Which ETF is the Winner for Long-Term Investors (6)

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How does VTI work?

VTI works like any other ETF. When you invest in VTI, you’re buying shares in the ETF, which gives you exposure to the underlying stocks in the CRSP US Total Market Index. The value of your VTI shares will rise and fall in line with the performance of the index.

One of the benefits of investing in VTI is that it gives you exposure to a diverse range of companies across multiple sectors and industries. This can help reduce the risk of investing in individual stocks, as the performance of the entire market can be less volatile than the performance of individual stocks.

READ MORE: What Are The Best Vanguard Index Funds For NewInvestors?

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Why invest in VTI?

Investing in VTI can be a good way to gain exposure to the entire U.S. stock market. It can also be a good way to diversify your portfolio and reduce risk. Because VTI is an ETF, it can be bought and sold like a stock, making it a convenient investment for those who want to invest in the stock market but don’t want to manage a portfolio of individual stocks.

Another benefit of investing in VTI is that it has low fees. Vanguard, the company behind VTI, is known for its low-cost investments. This means that more of your money goes towards your investment, rather than paying fees and commissions. As shown below, VTI has grown nearly 400% since its inception in 2001 and has grown 205% over the last 10 years.

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VOO vs VTI: Which ETF is the Winner for Long-Term Investors (7)

VTI is an ETF that tracks the performance of the entire U.S. stock market. By investing in VTI, you’re essentially investing in a diverse range of companies across multiple sectors and industries. This can help reduce risk and provide exposure to the entire market. With low fees and the convenience of being able to buy and sell like a stock, VTI is a popular choice for those looking to invest in the stock market.

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Which is better VOO or VTI?

The answer to whether VOO or VTI is a better investment ultimately depends on your individual investment goals and preferences. Both of these investments are examples of low cost index funds and are considered great foundations for any beginner investor. If you’re looking for exposure to a diverse range of companies across multiple sectors and industries, VTI may be the better option for you. However, if you’re looking for exposure to the largest companies in the U.S., VOO may be a better fit. If you are exploring how the two compare you can always use a free resource such as an ETF analyzer or an ETF overlap comparison tool.

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Does it make sense to own VOO and VTI?

Whether or not it makes sense to own both VOO and VTI in your portfolio depends on your individual investment goals and strategy. Both ETFs offer exposure to the U.S. stock market, but they track different indexes and offer different levels of diversification.

VOO tracks the S&P 500 index, which includes the 500 largest publicly traded companies in the U.S. This makes it a good option for investors who want exposure to the largest and most well-established companies in the country. VTI, on the other hand, tracks the CRSP US Total Market Index, which includes nearly all U.S. stocks, including small, mid, and large-cap companies. This makes it a good option for investors who want exposure to a broader range of companies and more diversification.

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VOO vs VTI: Which ETF is the Winner for Long-Term Investors (9)

If your goal is to have exposure to the entire U.S. stock market, owning both VOO and VTI can be a good strategy. This allows you to capture the performance of the largest companies through VOO and the performance of small and mid-cap companies through VTI. Additionally, owning both ETFs can help you achieve a more balanced and diversified portfolio, which can help reduce risk.

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However, if you’re looking to keep things simple and don’t want to manage multiple investments, owning both VOO and VTI may not be necessary. VTI alone can offer exposure to the entire U.S. stock market, albeit with a slightly higher expense ratio than VOO. It’s important to weigh the benefits of diversification against the added complexity and fees of owning multiple investments.

In summary, owning both VOO and VTI can be a good strategy for investors looking for broad exposure to the U.S. stock market and increased diversification. However, it’s important to consider your individual investment goals and strategy before deciding whether or not to add both ETFs to your portfolio.

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How many Exchange Traded Funds (ETFs) should I invest in?

The number of ETFs you should invest in depends on various factors, including your investment goals, risk tolerance, and diversification strategy.

As a general rule of thumb, most financial experts suggest investing in a well-diversified portfolio of ETFs consisting of at least five to ten different funds. This diversification can help you spread your investment risk across various asset classes, sectors, and geographic regions.

However, the actual number of ETFs in your portfolio may vary based on your investment objectives and preferences. For example, if you have a higher risk tolerance and want to invest in specific sectors or regions, you may choose to invest in fewer ETFs that provide exposure to those areas. Conversely, if you have a lower risk tolerance and prefer a more diversified portfolio, you may choose to invest in more ETFs across various asset classes and regions.

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Wrapping up…

In conclusion, both VOO and VTI are excellent ETF options for long-term investors. While VOO provides exposure to the largest 500 companies in the US, VTI offers a broader exposure to the entire US stock market. Ultimately, the choice between the two will depend on an individual’s investment goals and preferences. If an investor seeks a more diversified portfolio, VTI might be a better choice. On the other hand, if an investor is comfortable with a more concentrated portfolio, VOO may be the better option. Overall, both VOO and VTI have proven to be reliable investments over the long term, and investors can feel confident in either choice.

My personal preference is to buy VTI, but there is nothing wrong with owning both!

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