VTI vs. VT - Investing in the US Stock Market or Globally? (WHICH VANGUARD ETF IS BETTER?)

#ETFs have become so popular that the money invested in ETFs has gone up by 3,000% since 2003. According to Statista, the number of ETFs in 2020 reached 7,602 globally. That makes picking the right #ETF difficult - particularly for beginners.

One of the questions that come up first is: Which one is the best ETF to buy?

Two of the most popular ETFs out there are the Vanguard Total Stock Market ETF, ticker symbol VTI and the Vanguard Total World Stock ETF, ticker symbol VT. The #VTI tracks the total US stock market whilst the #VT tracks 98% of the globally investable stock market.

When you select an ETF for your investment portfolio, there are some key characteristics of an ETF that you should be looking at, such as the clear objective of an ETF, the total expense ratio (also known as ongoing charges figure), the fund size, the number of companies an ETF invests in, the weight of the top 10 holdings, its long-term performance and how an ETF treats dividends.

The total expense ratio measures the ETF provider’s total cost of running a fund. Total costs may include fees like management fees, trading fees, legal fees and auditor fees. The total expense ratio is calculated by dividing the total annual cost by the fund's total assets averaged over that year.

A large fund size of an ETF is important because it shows you how liquid a fund is - so if there are a lot of people that trade that ETF. If an ETF has a small fund size, then it’s less liquid - so that not a lot of people are trading this ETF on a daily basis. If you want to sell a less liquid ETF, you could run into a situation where there won’t be a lot of investors that want to buy that ETF from you - which could bring down your selling price massively.

The number of companies or countries an ETF invests in indicates how diversified an ETF is.

Which one of the two ETFs is better in terms of investment goal, costs, liquidity, composition, performance and dividends? In this video, we will compare the VTI and the VT in each of these categories to determine a winner. Enjoy!

⏰⏰ Timecodes ⏰⏰
0:00 Intro
1:02 Investment Goal
3:06 Costs
4:12 Fund Size
5:04 Composition
6:29 Performance
7:52 Dividends
9:25 Which One Is Better?

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DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.

#Vanguard #ETF2021 #BestETF #BestVanguardETF #BestETFs #BestETF2021 #VTIvsVT #BestETFs2021 #VTvsVTI #IndexFund #IndexFunds

[greenquake]

What're your thoughts on a good ETF that you would hold to go along with QQQ in an IRA? I still have a long way to go. Don't mind risk. But is there an etf in here you like in addition to QQQ that covers different sectors?.

[doomshallot]

I've recently switched to VT. I think international investing is CRUCIAL to a well diversified portfolio. I don't want to miss out on the periods of international gains in the next few decades :)

[AaronGraves]

Great video! I've personally started DCAing into VT and BNDW to capture the international pieces of both sides.

[AsiaPacificTV]

Amazing vid... I'm big on VT, it's like 50% of my portfolio

[jamesklapetzky]

Thanks for the simple comparison between VT & VTI? It definitely helped clarify the 2 for me.

[marioq]

Very important video. Thank you so much!

[thiinkerca]

Excellent through analysis thank you. This confirms as the kne I will use. VT

[eatmorecoleslaw]

Well done, impartial analysis and clearly presented

[sebastianzeitblom]

It's really hard from a behavioral standpoint due to the continued US outperformance over the last 15 years, but from an objective, scientific point of view, investors should choose VT for global diversification. The expense ratio has been decreased to just 0.07%, and I don´t think this should be a factor in the decision making process. US-based investors may think about VTI+VXUS if they plan to claim the foreign tax credit.

[jackcarraway]

I say buy VTI/VOO and VXUS; that way you can scale things to fit your needs.

[iali]

The US seems to be the only market that doesn’t seem to have those issues. Also, the largest US companies get ~45% of their revenues outside the US. I have VT but sometimes wonder if it really makes sense.

[ericswainson]

I'm new in the market so thank you for your insight and information.

[akin]

Good video. VTI has outperformed VT by roughly 4% per year from 2010 to September 2021 (adjusted for inflation & reinvested dividends). VT is too far allocated to international (40%). An 80/20 mix is a better allocation, 80% USA and 20% International.

[JohnSmith-zrtn]

good video: strange that less than 1000 views.

[imveryhungry]

the only reason i buy index funds is because its got a whole bunch of stocks in it. I know if i just put my money into 1 ill pick the wrong one and itll go bankrupt and ill lose everything!!!

[rpshah]

Combination of VTI and VXUS is better than VT.

[barshilia]

Hello I like your video.

I m from india

Which etf is best please tell me