VOO vs. VTI--S&P 500 Index versus Total Stock Market Index Fund⛱ [ATF Text]: [ATF URL] Click "Show More" to see Ad Disclosure Morningstar Series: 3-Fund Portfolio: Tools & Resources 📚 My Book (of course): 💰 Personal Capital: ✅ Free Investment Tracking Spreadsheet: 0:00 Introduction 1:20 VOO vs VTI 8:40 S&P 500 vs Total Stock Market Returns 13:43 How to Choose I've been investing for over 30 years and writing about investing for the past over 15 years. One of the questions I get quite a lot is in a portfolio, should you invest in an s&p 500 index fund, or a total stock market index fund? And it's a good question. And it's one that sort of torments folks. I don't think it needs to; actually I think the answer is really, really simple. But the explanation takes a little time. We're going to walk through that today. And what we're going to do is we're going to compare two Vanguard ETFs, we're gonna first compare the s&p 500 index ETF, which is ticker VOO. And then the vanguard ETF that covers the total US stock market, and that's ticker VTI. They're good representations of the two markets that they cover. And it's interesting, because what we're going to learn is there are a lot of significant differences between the two funds, the two types of investment strategies, s&p 500 versus total stock market. #voo #vti #investing ABOUT ME While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money. I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom ( LET'S CONNECT Youtube: Facebook: Twitter: DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions. AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom....(read more)
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When it comes to investing in the stock market, there are various options available to individuals looking to grow their wealth. Two popular choices for investors are the Vanguard S&P 500 ETF (VOO) and the Vanguard Total Stock Market ETF (VTI). Both VOO and VTI are index funds that aim to replicate the performance of the overall stock market. However, there are some key differences between the two funds that investors should consider before making a decision. The first major difference is in the composition of the indexes that the funds track. VOO tracks the S&P 500 Index, which is made up of 500 of the largest publicly traded companies in the United States. This index is widely regarded as a benchmark for large-cap stocks and comprises about 80% of the market capitalization in the US stock market. On the other hand, VTI tracks the CRSP US Total Market Index, which includes all investable stocks in the US market, both large-cap and small-cap. This index represents approximately 100% of the investable US equity market and offers investors exposure to a broader range of companies. Another important difference is the expense ratio associated with each fund. VOO has a slightly lower expense ratio of 0.03%, compared to VTI's expense ratio of 0.04%. This means that VOO is slightly more cost-effective for investors, especially those looking to make long-term investments. However, the difference in expense ratios is minimal and may not be a significant factor for most investors. While both funds offer diversification and exposure to the US stock market, the performance of VOO and VTI can vary due to their differing compositions. Over the long term, VTI has displayed slightly higher returns compared to VOO, mainly because it includes exposure to small-cap stocks that have historically outperformed large-cap stocks. However, during periods when large-cap stocks dominate the market, VOO has demonstrated stronger performance. Investors should also consider their risk tolerance when choosing between the two funds. VTI, with its broader exposure to small-cap stocks, can be slightly more volatile than VOO. Some investors may prefer the stability and predictability of VOO, while others might be willing to take on increased risk for potentially higher returns with VTI. Ultimately, the choice between VOO and VTI depends on an individual's investment goals, risk tolerance, and desired level of diversification. For those seeking exposure to the largest and most established companies in the US, VOO is a solid choice. However, investors looking for broader market exposure and potentially higher returns may lean towards VTI. It is important to note that both VOO and VTI are long-term investments that perform best when held for extended periods. Regardless of the fund chosen, investors should carefully evaluate their financial goals and consult with a financial advisor before making any investment decisions. https://inflationprotection.org/comparison-between-voo-and-vti-analyzing-the-sp-500-index-and-total-stock-market-index-fund/?feed_id=129774&_unique_id=64e3e02807f9d #Inflation #Retirement #GoldIRA #Wealth #Investing #indexfunds #sp500ortotalstockmarket #sp500vstotalmarketindexfund #sp500vstotalstockmarket #SP500vstot #totalmarketvssp500 #vanguardetfs #vanguardindexfunds #vanguardindexfundsforbeginners #voovsvti #vtivsvoo #vtivsvooperformance #VanguardIRA #indexfunds #sp500ortotalstockmarket #sp500vstotalmarketindexfund #sp500vstotalstockmarket #SP500vstot #totalmarketvssp500 #vanguardetfs #vanguardindexfunds #vanguardindexfundsforbeginners #voovsvti #vtivsvoo #vtivsvooperformance
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