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

[@apga1998]

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!

[@tonynorris7992]

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

[@fhowland]

One of the best finance channels on KZbin!

[@floop2935]

I started with VTI! And I will continue investing in VTI! Pick one and go to sleep 😴 📈

[@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!!!

[@ryanbaileyboxing]

💯

[@riseandgrindtv1]

Factz

[@jzen1455]

I agree. Some people get all uppity and proclaim "THERE'S SO MUCH OVERLAP BETWEEN THE FUND!" as if having 2 very similar funds contaminate each other.

[@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!

[@marcusrodriguez9843]

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.

[@ebear4015]

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%.

[@yasserkool]

How is your VXUS investment going? It looks like it has a lot of room for growth, I'm intrigued. Btw I'm twenty, got into crypto at 19, and now I'm planning to get into stocks so I appreciate the second tip. I was planning to only invest in VTI, but you've opened my eyes towards international funds

[@ebear4015]

@@yasserkool It's a pretty boring stock without much growth with no volatility at this point. I hold it to hedge against the US markets if the markets take a massive dump. International markets certainly have a lot of room to grow. I feel its important to have exposure to international markets without stock picking, although US companies have global reach.

[@yasserkool]

@@ebear4015 I agree, well I'll definitely pick up VXUS as well. I know a lot of countries that are aiming for more growth in the next decades, im just not sure how much % I should invest in it, I'm thinking 70% VTI and 30% VXUS.

[@bigpicturethinking5620]

33 leaves you with lots of time to let things simmer. Better 33 than never, like many….

[@SGyru]

@@yasserkool VT (Vanguard Total World Stock ETF) is about 40% global exUS and then 60% US total market and many people like VT as a all in one single position holding for a portfolio. Something to think about. I'm much lighter on foreign though.

[@TGermain35]

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

[@afridgetoofar1818]

Personally I would go with the S&P 500 Index fund. It's slightly less volatile than the Total market

[@RandomJane104]

I just went with both instead of stressing over it.

[@nosnid3official]

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

[@Rolandinos25]

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

[@christopherguarnieri7439]

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.

[@darthnatas953]

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.

[@subpargolfer6654]

I don’t see the link for the 6 fund portfolio you mentioned @15:38. Am I overlooking it?

[@Mediaman67]

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!

[@kyaghleah]

Currently VBR is up 6 or so percent over the past 6 or so months….VOO is up double that. Any chance you think that will change over the next 6 months?

[@mediacreationsusa]

@@kyaghleah well they track two different indexes - the VOO is the S&P 500 basically - and the VBR is more the russell 2000 which are more value stocks, which were doing great. VOO is a longer term investment in my opinion, but I hold VBR and bought it a while ago, and it has done well too. - they can change daily too, and some quarters, one is doing better than the other. - BTW as I posted, I prefer VTI over VOO - they are very similar, but VTI gives a slightly larger exposure to more things... I hold VTI and VBR and you could add a couple of Bond funds and a decent REIT and maybe Gold and have everything you'd need forever...

[@kyaghleah]

@@mediacreationsusa thanks!! Another question: The BONDS ETFS look as if they haven’t grown at all in the past 5 years. Why would I invest in them? A hedge?

[@mediacreationsusa]

@@kyaghleah You want a percentage of bonds based on your time to retirement - 60/40 Equities to Bonds was always a good rule. im more 50/50 now but I'm getting older - normally investors would have Short term and long term bond funds - or take the middle road in something like BND is a pretty good ETF for bonds... I actually like VCLT better as it has a better yield, and still not a huge risk being mostly corp bonds... but the idea is that short term pays better, and long term was always supposed to be less risk. Actually, I look at bonds as part of a good fixed income portfolio, along with other things, which is where you would be headed closer to retirement, and you need a monthly or quarterly payout to pay your bills. Meanwhile, you can re-invest those dividends until you need them to pay you. I would look into some of the Pimco funds... but do your DD - don't listen to ANYONE on youtube alone - better you understand how things work like that - CEF are great to have too with bonds, but watch those fees!

[@kyaghleah]

@@mediacreationsusa 👍✨👍

[@Winterstick549]

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

[@douglasjones9140]

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.

[@procheeseburger_2]

Just hold anything you purchase for 1 year and you'll pay less in taxes on any gains.. though the US GOV is trying to change this so there is no benefit of holding for 1 year.

[@Kyungone]

Look for municipal bond fund, their dividends are exempt from federal and state income tax

[@donnafong2267]

@@Kyungone i thought in California ca municipal bonds are only exempt from state taxes . Taxable to federal. I have ca municipals .. have I been doing my taxes this wrong?

[@charleshughes2487]

@@donnafong2267 (;((((

[@laurak5196]

@@donnafong2267 municipal bond interest is not taxable by the Fed, generally speaking.

[@ozzysgarage]

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

[@rgarri6396]

Mr Berger you should do a video about exchanging mutual fund to index funds. I had a lifestradigy fund and was transferring to index funds to save money. I wanted to start the year off by saving on expenses so I sold the day of dividend distribution and lost thousands by selling on that day. You would be great to explain this action. Remind investors of dividends and distributions.

[@johnglatt3627]

Rob, I have recently found you and love the few video's I have viewed. I am probably the minority and own a little of both. I know it's crazy!!! Thanks and keep the great content coming.

[@panamahub]

This is the explanation I needed now that I'm learning about passive investing.

[@iberopediaGE]

THANK YOU ROB! At last I got the nice and easy-to-understand explanation of these two ETFs.

[@tphillips777]

Hi Rob, why is it that when you run a Monte Carlo sim, using Portfolio visualizer for VTI and VOO, you get significantly different results. Same happens when you run VTSAX and FSKAX?

[@helloromie]

Why are people holding both VOO and VTI? VTI includes both small and med cap stocks (tiny bit more volatile) and VOO is top 500 large caps. They both have an average return nearly spot on to each other, so why double dip? I have heard many say not to hold both. Just curious as to why so many have both.

[@alrocky]

VOO & VTI are very similar almost interchangeable so there is no strong reason to hold both within the same account.

[@helloromie]

@@alrocky Exactly. I don't understand why people have both. From what I see in the comments, people are holding both.

[@4tomop]

Hi Rob - along these lines, I have been comparing VFIAX to VOO, since I own a large position in VFIAX but it costs an additional basis point in fees over VOO. On a large holding, this difference adds up to real money over time. One would think that the only difference in performance would be attributable to the difference in management fee. Yet, when I compare the two in Portfolio Visualizer, it appears that the Admiral Shares actually out-perform VOO. Do you know why that might be, assuming the data is correct? Thank you!

[@Cwilly13ify]

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

[@lifeisgood070]

minimal exposure at best. Voo at 90% portfolio + 10% voog will outperform your vti long term guaranteed. Normally, i wouldn't guarantee investments. But that one I would. There's some good articles on it. Check it out.

[@lifeisgood070]

also you're probably smart, but incase i had to explain. The exposure is minimal because it was market cap weighted not risk or performance rated like my example :) This is why buying like voo is like putting x% directly into apple or fb, msft, apple, etc. u know. yup.

[@bribradt3450]

​@@lifeisgood070the weights aren't all that different on the big stocks. And vti has a total of 28 percent distributed in mid and small caps. Not saying it's better or worse, but it's a little more than "minimal" exposure.

[@ijchua]

Read Bogle's Common Sense on Mutual Funds. While small and mid caps may have higher average returns, their volatility is much higher, and on a risk-adjusted basis they underperform large caps. I personally do not invest in small and mid caps for that reason.

[@janethunt4037]

Thank you for this clear explanation and concluding remarks. We are trying to decide now exactly which funds to settle into for retirement. This was very helpful.

[@dylanbarrett599]

Great video. What I’ve come to believe is it’s better to invest as much money as possible as soon as possible, rather than agonize over the perfect fund. Maybe buy 3-5 funds and just keep investing!

[@jnlin85]

Rob mentions a video where he talks about his 6 fund portfolio (slice and dice)...can anyone find it? Thanks!

[@NotShowingOff]

What about adding the s&p and extended market? Does that change the calculation?

[@paulbuono5088]

Well explained...I think a lot of people suffer from analysis paralysis

[@cardinalx13]

Where can I find an example of a 6 fund portfolio? I don't see it in the description.

[@Data_on_trail]

Have you done a similar analysis of Cap-weighted versus Equal-weighted S&P 500 (or other comparable) funds?

[@rob_berger]

No, but that's a good idea. I'll add it to my list of topics for future videos.

[@ericwiederholt4634]

Hi Rob, thanks for this explanation. Would you please leave a link to your 6-fund portfolio? Thanks

[@tdc3rd]

Really helpful, Rob. I just divide up the equity portion of my portfolio 50/50 between FXAIX (s&p 500 index) and FSKAX (total U.S. stock mkt). Everyone's different; for me, having a little more exposure to mid and small caps than an s&p 500-only portfolio feels right.

[@xxurukaixx]

Is there a mistake ? The US Stock market which you chose as portfolio 1 doesn’t show the global Stockmarket. That’s why I think there is not a big difference. Am I Wrong?

[@GhettoFabulousLorch]

What about VT vs VTI? VT has an inferior record to VTI but is it a good idea to put all chips into the US basket for the long run?

[@jdailey19811]

I use VTI, VXUS for international exposure and BND for the bond market. Just adjust your allocations as you get older.

[@Resdue007]

Awesome Red Sox shirt in the background!!! Love it 😍 Fanway Faithful

[@tomh3652]

Im just starting I was wondering if starting small like 3000 in Voo and 3000 in Vti would be a good idea ? If anyone has any thoughts on that idea.Thanks

[@baotran3051]

Don't invest in both of them. 99.4% of VOO's 510 holdings are in VTI so essentially you're just buying more of VOO if investing in both funds. Pick one and stick to it, there is essentially no difference if you're investing in the long term.

[@tomh3652]

@@baotran3051 Thanks your right.

[@VanillaCherryBread]

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

[@andyb2494]

Hi Rob, if I own 100 shares of ETF VTI and besides contributing fixed amount every month, what if I also sell a covered call on it. Is it possible to even sell covered call on this eft? Thank you.

[@franklinvaldez3422]

Love this video, thank. I m investing in VTI makes feel good knowing I own all the stocks. Question do other total stock market own all the stocks like VTSAX. For example total stock market from fidelity owns all stocks too ?

[@dcgirl8765]

Can you compare why an ETF is better than their mutual fund components?

[@TJC-zz4zx]

Hey Rob , why do seem to favor Vanguard over Fidelitys S&P fund when the Fidelity fund is much less expenvice on manage cost for the fund ?

[@XingLLoh]

If you read the little book of common Sense investing you'll see how the creator of voo & vti which is John Bogle stated that they are basically the same regardless of which you pick the return difference are minute

[@robertlozano6546]

Rob, How about in a lump sum buy and hold situation. Would going the ETF route still make sense??

[@johnbick3884]

I wish you would have identified how much small cap/small cap value is included in the VTI.

[@rickyaz8640]

About 2.5 %. That’s why it tracks VOO so closely since almost 90% is the 500

[@GEO-xx6sq]

I really like your advice…..any thoughts on NULG and SPLG…..using a s&p 500 fund of different sizes as with splg vs voo…….just 10 times the amount of “shares”…….how do you feel about that? Thank you

[@chrispaul9124]

What is the equivalent of VOO on fidelity? Do you prefer Vanguard over Fidelity?

[@afridgetoofar1818]

FXAIX is the Fidelity equivalent, and personally I prefer Fidelity over Vanguard for their customer service

[@bribradt3450]

You can buy Voo on a fidelity account without any cost

[@J0searreaza]

Why not investing in both VOO and VTI?

[@johngill2853]

Because they're both almost identical your just wasting your time. If you want large cap stocks only use the S&P 500 If you want small cap and mid cap exposure along with the large cap use vti Theoretically vti in most time periods will return more money because small cap stocks are more risky and should add more return long-term

[@tomcooper2646]

I am looking for the 6 fund portfolio link you mentioned in the video? Thx Rob…Great Video!

[@larrysplace0016]

Hey Rob, great video as always. I just want to add that some 401ks offer extended market funds which allow us to add the small and medium cap companies to the sp500 fund. You can explain how it works better than I though.

[@alansouzati]

Amazing comparison and general investment tips. Keep it coming!

[@e.manuel]

Best explanation I’ve seen in regards to both funds. Bravo 👏

[@sleepinggiant575]

is forty years old too late to start investing in etfs.

[@Andrew1337ful]

I like both of these, but would VOO be a better bet if reinvesting dividends? It seems VOO has provided a slightly higher dividend versus VTI. I wonder if reinvesting those dividends over the long term would make VOO a better fund to go with

[@alrocky]

Vanguard S&P 500 ETF (VOO) --- Vanguard 500 Index Fund Admiral Shares (VFIAX) Vanguard Total Stock Market ETF (VTI) --- Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) One is subset of the other. The latter hold small caps thus more diversified. They are almost interchangeable and their 5 year 10 year and Since Inception returns very similar: (VFIAX) = 8% VTSAX = 8.5%. Pick one and invest as much as your income and budget allows.

[@davefalls6703]

Rob, I truly need sound advice on this.......I have $30,000. to put into an index fund but do not plan to have it invested for more than five years as I am 65 years of age now. What should I do with the money to bring the best return???

[@TJDawgs72]

VTI and/or VOO and QQQ as well. Three no brainers to invest in…if you look at their long term interest payouts there around 10%-12%. Just an opinion from my time looking into to several different ETF’s. Talk to a financial planner if you really aren’t sure…good luck

[@davefalls6703]

Thank you so much for the advice.

[@MrTombegley]

Hi Do you think its a good idea to have both in my portfolio or not ? thanks

[@traydar5]

Learning new information from your videos. Thanks

[@oe542]

Newb question here. I often hear people say things like you said about monthly investing. Things like “if you invest $500 a month”…. Well unless I’m mistaken, speaking for VOO you can’t invest $500 a month because fractional shares are not available correct? As of today you could only invest $433 a month an buy yourself 1 share. Right?

[@rob_berger]

Some brokers allow fractional shares. And you could always use the mutual fund version--VFIAX

[@retired8484]

They are essentially the same, but obviously total market is the correct fund.

[@AJ-es5yd]

Lol!

[@Thodson14]

Great video. General question from beginning investor: Should I invest in both funds or load up on one? Will compound interest benefit me more if I concentrate capital in one, or will the dividends pay more or less the same if I were to split my contributions between the two. Thanks for any insight!

[@alrocky]

There are very similar to each other in several respects including long term returns thus interchangeable. You can almost flip a coin. Generally you want to start investing via Roth IRA until you get workplace plan [401(k)] with company match.

[@jimgrant1776]

Rob, excellent video. - - - If you haven't done so already, I'd like to hear what you would recommend to a senior citizen who can't invest for the long term?

[@chrispaulick]

I just don’t understand why I should invest in VOO instead of BRKB when BRKB is up 1473.51% since 1996 and VOO is up 579.17% ? And BRKB has out preformed the S&P each year this century.

[@torchy187]

Great video. Lower dividend ETF VTI would be better in a taxable account.

[@KoodGarma]

Like in a Roth? Why?

[@higiniomorales459]

@@KoodGarma - a Roth is a tax sheltered account, not taxable account (brokerage).

[@123narnar]

Go over expense fee?

[@JetDriver77]

Good vid. Can we get a VTI vs. SCHB? They both look identical to me, but I may be missing something.

[@the_wiki9408]

11:50 - Also $500 in 1972 was a LOT of money to be investing monthly as a young person with 50 years to go. It would be like starting today with $3500 a month. You'd have to be a CEO's son.

[@fabiGBOtown]

What if we invest in both? Is that a bad strategy than investing in just 1?

[@suns1457]

What platform should you invest your money? I am using M1 but I'm afraid it might not be here years from now. does it matter what platform you use? should we go with more reputable like Fidelity or Vanguard?

[@AJ-es5yd]

Vanguard 100%

[@andrewmilner4929]

Hi Rob, any advice or videos for someone like me 58 years old and new to this. Where do I start or is there a point with only a few years left to retirement?

[@alrocky]

Typically start with employer [401(k) or similar] retirement plan if company match is offered; contribute at least enough to receive company match. You may next contribute $7,000 to Roth IRA.

[@pablouribe1522]

Man i am 22 years old and that comparision you did in the video about delaying 5 years really struck me. Thanks for this excellent content.

[@amaradumbuya2099]

can I add money every month to my VTI

[@boraboyvr6]

Great video, what’s your opinion of the vanguard total international stock market? Is worth to have it in the portfolio?

[@sjwc04]

Vea developed markets vwo emerging markets are Better pics invest in both equally . 12.5% each if your brave lol 😂

[@SARbeaver1]

New subscriber here. Did you mention whether dividends are being rolled back into the investment, or simply cashed in?

[@briangulley6027]

You decide to re-invest or cash it out. I reinvest.

[@ЛюсияСултанян]

Hi Rob i have 1 questions about ETFS Can i mixed VOO, VTI, VB,VO ,VNQ,VUG,VGT all off them together In one Portfolio it will be diversified for example for 20 years

[@alrocky]

You don't need all those ETFs as you certainly don't need to hold both *VOO* & *VTI* at the same time as there'd be overlap or duplication since they're almost interchangeable.

[@btuesday]

What about that tax bill you get every year for the dividend? As my portfolio grows my tax bill gets bigger. Do I sell shares to pay the tax?

[@taylorhauck6285]

If I have say $460....enough to buy 2 shares of VTI or just 1 share of VOO....which is the better option? (based off the current prices of around $230 for VTI and $410 for VOO.

[@ItsMe-ky1km]

doesn't matter. buy and increase income

[@williamperdue8051]

I’d say any time you have 2 strong assets, might wanna go with the one that gives you more shares. Key to financial freedom is 1000+ shares. Add every pay period and you’ll be good. VGT is another dope one. Check the 1 yr and 5 yr returns.

[@kmque3166]

Hi Rob, thx for info! I’ve noticed ppl don’t talk about Vanguard’s VLCAX index fund or VV- etf version. I think VLCAX/VV is more like VFIAX/VOO than VTSAX/VTI. What do u think?🤔

[@wread1982]

VV takes out the growth stocks and only invests in value companies that are proving earnings

[@aaronbell5743]

With VOO at like $378 today should I wait for a market correction to get started investing in VOO? I know you can;t time the market but should I get in when its high like it is now? Can i even make money getting into VOO when its high? Hope this question makes sense.

[@NetomaMusic]

You're timing the market, don't! Market up or down , just invest (buy)... and DCA. What if there's no correction and keep going up and up. You're money as to work for you and compound right away. It average down whether you buy up or down, over the long run. Price doesn't matter in investment with a good company or etf.

[@bribradt3450]

If you invested in voo when you posted this comment a year ago, you'd be up almost 30 percent

[@Harry_16710]

Great comparison, Rob!

[@stephen9609]

Do you feel there is any benefit of having some funds outside of US stock ETFs? Ex. Vanguard's VEA?

[@wread1982]

VT, EMQQ, KWEB, MCHI

[@sun1234567890]

What about the VOOG? Is it better than the VOO?

[@TarunSinghUSA]

VOO = 500, Roman numeral for 5 followed by OO, or 500

[@quasemsufi]

Sharp eyes !

[@believeimages6034]

You get that shirt from H&M? I have the same one

[@fabiGBOtown]

Which fund is agressive fund? I mean which are your top picks? Video idea? You could do also small cap growth vs value

[@brianguy4333]

Hi Bob, I live in Australia and am late to investing. Over a 5 to 10 year period should I invest in growth stocks or an index fund?

[@sarar941]

can you comment for a Canadian? Should I hav vti or voo in rrsp/tfsa or both?

[@rob_berger]

I'm not sure why you would want both. I also don't think there is one "right" answer. Frankly, both accomplish similar goals. I explain in the video how I make the decision between the two.

[@aubreybondoc]

US stocks/dividends are better if placed on RRSP to avoid the 15% withholding tax

[@johnfrank6083]

For a taxable account, which fund is more tax efficient? Thanks.

[@alrocky]

Morningstar > enter VOO/VTI > Price > Taxes > 3 Yr Tax Cost Ratio

[@pablo08034]

Clear and relatable. Thank you!

[@leorodrigo8840]

Thank you for sharing. More blessings! 😊🙏

[@Patash7]

Great videos! I’m learning so much. What do you think about QQQ?

[@rob_berger]

I think it's a reasonable option if you want to over-weight tech/growth stocks, something I've never wanted to do.

[@mohamudmohamed9049]

Great content. Thank you.

[@anonymousamerican8831]

Vangaurd VOO is my largest holding.

[@eckankar7756]

What about VTI vs Fidelity Total Stock?

[@leftyla]

Thank you so much for this. Off topic, is there an advantage to choosing the "Admiral" versions of these index funds?

[@nikolaspanayiotou7023]

Yes, the admiral is so to say the "rich persons " version, so if you have 10000 dollars then you can buy the admiral shares and have lower fees. I dont remember the exact numbers but I think VTI had lets say 0,13% fees and admiral shares 0,027% fees.

[@johnguertin5054]

did you forget to link your 6 fund portfolio?

[@Jim-oo7dk]

I wish they'd do a split on VOO, which would bring the price down to around $250. I myself chose VOOG (the growth stocks within VOO).

[@alrocky]

You may purchase fractions of ETF share.

[@CWya]

Rob, do you still recommend using M1 finance?

[@rob_berger]

I think it is a good option when you are saving for retirement. Once you are in or near retirement, I prefer a more full-featured broker as you have to deal with cash management.

[@red149]

if you already have your lump sum, the best strategy is to invest it right away. DCA is good when you have a stream of income to invest

[@afridgetoofar1818]

Depends what your lump sum is. If it's less than $50,000, then put it all in now. If it's $500,000, I'd DCA it over the course of 12-18 months.

[@red149]

@@afridgetoofar1818 well if the market goes up ( an market goes up 70% of the time ) you just lose gain. DCA with a lump some only gives you peace of mind but statistically contributing one shot wins over DCA

[@afridgetoofar1818]

@@red149 That’s true, but if you have a sudden market crash it can be a disaster. I just think your safest bet for a large sum, say more than $100,000, would be to DCA over 12 months. That’s just my opinion

[@red149]

@@afridgetoofar1818 yes but who’s to say the big crash won’t happen the day after you make your last contribution ?

[@afridgetoofar1818]

​@@red149 It could. As you say, statistically you're most likely better off doing a lump sum, but a DCA reduces the risk a little.