VOO vs. VTI: S&P 500 Index versus Total Stock Market Index Fund

VOO vs. VTI--S&P 500 Index versus Total Stock Market Index Fund⛱ [ATF Text]: [ATF URL] Click "Show More" to see Ad Disclosure

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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.

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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.

[EzekielDaniel-fb]

I came across your channel through this video—case studies are incredibly valuable, and I'm eager to see more in the future! Building wealth involves establishing routines, like consistently setting aside funds at regular intervals for smart investments.

[apga]

Thank you, Rob. The important lesson: Do not dicker and dally about which broad-based index fund to choose………begin investing as soon as possible. Time is your tail-wind. Don’t squander it!

[Rolandinos]

VOO or VTI if you invest in either or you are already ahead of the majority of the people out there

[arigutman]

It is better to have time in the market than trying to time the market and pick the perfect stock… VTI vs. VOO, just invest and stop wasting time!!!

[VanillaCherryBread]

This is how I made a few hundred K's last year. Investing in growth & dividend paying ETFs! Love me some compound interest.

[tonynorris]

This is very timely for me. I was pondering this question this morning for my Roth IRA. Thank you for such a clear explanation.

[Cwillyify]

Looks like VTI can slightly outperform/underperform due to the inclusion of micro/small/mid caps. I prefer it

[ebear]

Started investing in the stock market primarily in VTI at the age of 33 and now, VXUS, and boy, I can't wait to teach my children about the importance of investing earlier than I did. My speculative ETF is ARK and SLYV that make up 10%.

[ozzysgarage]

They are more similar than they are different. Pick one, DCA, and stick to it for the long-haul.

[douglasjones]

Rob- just beginning my investing journey and I'm trying to improve my financial literacy. I was wondering if you had any content regarding building tax-efficient portfolios in a taxable account? Thanks in advance and thank you for all of your informative content.

[christopherguarnieri]

You can always pick an s&p 500 etf and a russell 2000 etf and you yourself decided which one you want to put more of a percentage into.

[TGermain]

I appreciate this video! I was losing my mind trying to decide which one to choose.

[jollama]

I have VOO, VGT, and VTI because I’m tired of having to pick between one or the other

[darthnatas]

I personally like that you can compare the returns of an S&P500 index fund to the actual S&P500 index more easily over any time frame. It gives me that extra bit of confidence that the fund is investing in what it says it is, and returning the market rate it should.

[Winterstick]

I'm weird.
My two etf's are VOO and PHO.
Both have been great for me over the past three years.

[marcusrodriguez]

I put $300 into my Brokerage account a month. Being that VTI is just under that amount makes things very easy for me. I've been buying VOO. It's nice to know they're not that much different.

[NolanGouveia]

Great moves my friend! I’m not big on dividend investing as my stock investing is mostly long term index/ETF and last year I made about $60k in appreciation so that’s exciting!

[Mediaman]

basically VOO is inside VTI, so with VTI you get all of VOO (same holdings) - I agree with your reasons for one over the other - I like having something like VBR with VOO - and since small caps have greatly outperformed this year, it's nice to be heavier weighted in small caps... but the larger ones are there for downside protection... no free lunch... Equities are easy to balance like that - it's bond investing that keeps me up at night lol.. Funny how it was always the other way around for years... Fed is keeping us all on our toes lately... Now if I could only go back in time and buy VTI again for more shares at $98!

[nosnidofficial]

The video was well made, thank you for using your time and energy to educate sir.

[fhowland]

One of the best finance channels on YouTube!