VOO vs VTI: Vanguard S&P 500 ETF vs Vanguard Total Stock Market ETF Comparison
Compare VOO (Vanguard S&P 500 ETF) and VTI (Vanguard Total Stock Market ETF) by expense ratio, dividend yield, holdings, and more.
Key Differences
- 1Dividend yield: VTI 1.33% vs VOO 1.3%
- 2Holdings: VOO 508 vs VTI 4,026
Conclusion
VTI has an overall advantage with higher dividend yield (1.33% vs 1.3%). However, VOO also offers Lowest expense ratio, making it worth considering depending on your portfolio goals.
| Category | VOO | VTI |
|---|---|---|
| Fund Name | Vanguard S&P 500 ETF | Vanguard Total Stock Market ETF |
| Current Price | ... | ... |
| Category | Index Tracking | Index Tracking |
| Expense Ratio | 0.03% | 0.03% |
| Dividend Yield | 1.3% | 1.33% |
| Holdings | 508 | 4026 |
VOO Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Alphabet
VTI Top Holdings
- 1. Apple
- 2. Microsoft
- 3. Amazon
- 4. Nvidia
- 5. Alphabet
VOO Features
- •Ultra-low cost
- •Tracks the S&P 500
- •Managed by Vanguard
- •Suitable for long-term investing
VTI Features
- •Covers entire market
- •Includes small-cap stocks
- •Extremely diversified
- •Low cost
Pros & Cons
VOO
Advantages
- ✓ Lowest expense ratio
- ✓ Stable management
- ✓ Tax efficient
Disadvantages
- ⚠ Market risk
- ⚠ Large-cap concentration
- ⚠ Individual sector risk
VTI
Advantages
- ✓ Perfect diversification
- ✓ Captures small-cap growth
- ✓ Very low expense ratio
Disadvantages
- ⚠ Total market risk
- ⚠ No individual stock selection
- ⚠ Average returns
Investment Strategy
Best For: VOO
Buy and hold strategy; long-term core asset
Best For: VTI
Single-ETF portfolio possible; recommended to combine with international ETFs
Detailed Analysis
VOO (Vanguard S&P 500 ETF) and VTI (Vanguard Total Stock Market ETF) Both belong to the Index Tracking category, covering a similar investment area but with different strategies. VOO: Vanguard S&P 500 ETF (VOO) is an exchange-traded fund that provides investors with exposure to broad market indices. It carries an expense ratio of 0.03%. The fund offers a dividend yield of approximately 1.30%. The portfolio holds 508 securities. With an expense ratio of 0.03% and dividend yield of 1.3%, its top holdings include Apple, Microsoft, Amazon. Key features include Ultra-low cost, Tracks the S&P 500, with Lowest expense ratio being a major advantage. VTI: Vanguard Total Stock Market ETF (VTI) is an exchange-traded fund that provides investors with exposure to broad market indices. It carries an expense ratio of 0.03%. The fund offers a dividend yield of approximately 1.33%. The portfolio holds 4026 securities. With an expense ratio of 0.03% and dividend yield of 1.33%, top holdings include Apple, Microsoft, Amazon. Notable features are Covers entire market, Includes small-cap stocks, with Perfect diversification as a core strength.
Investment Recommendation
VOO is suitable for Buy and hold strategy; long-term core asset, while VTI is suitable for Single-ETF portfolio possible; recommended to combine with international ETFs. Since both ETFs are in the same category, choosing one for your portfolio is more efficient. Base your decision on expense ratio, liquidity, and issuer preference. For beginners, we recommend a core-satellite strategy: choose a low-cost, well-diversified ETF as your core holding, and allocate the rest to satellite positions.
Key Summary
Both VOO and VTI are excellent ETFs for their respective investment objectives. The key is to choose based on your investment goals, time horizon, and risk tolerance. Rather than focusing on a single metric (dividend yield, fees, etc.), evaluate from a holistic portfolio perspective. Use our rebalancing calculator to easily determine the optimal asset allocation including both ETFs.
VOO vs VTI Investment Guide
Both VOO and VTI are popular US ETFs, but they differ in investment strategy and portfolio role. VOO has an expense ratio of 0.03%, while VTI charges 0.03%, Both ETFs share the same cost structure. In terms of dividend yield, VOO offers 1.3% while VTI offers 1.33%, making VTI the better choice for income investors.
When choosing between the two, consider your investment goals, time horizon, and risk tolerance. If long-term growth is your priority, favor the ETF with lower fees and broader diversification. If you need steady cash flow, the higher-yielding ETF may be more suitable. You can also hold both in your portfolio for a complementary approach.
Regardless of which ETF you choose, maintaining your target allocation through regular rebalancing is key to long-term performance. Review your portfolio quarterly or semi-annually, and adjust if weights have drifted significantly. Our rebalancing calculator can automatically determine the buy/sell quantities for each holding.
5 Things to Check When Comparing ETFs
Expense Ratio: Even a 0.1% difference in fees can translate to thousands of dollars over long-term investing. When two ETFs track a similar index, the lower-cost option has the edge.
Tracking Index & Holdings: Even ETFs in the same category may track different indices. Review the top holdings and sector weights to find the best fit for your investment goals.
Dividend Policy: Compare dividend frequency (monthly vs quarterly), yield, and dividend growth rate. Monthly dividend ETFs may be preferable if you need regular cash flow.
Trading Volume & Liquidity: Sufficient daily trading volume ensures you can buy and sell at fair prices. Low-volume ETFs may have wider bid-ask spreads, increasing your trading costs.
Portfolio Role: Determine whether the ETF serves as a core or satellite holding in your portfolio, and size your position accordingly.