VTI vs VOO: Side-by-Side ETF Comparison

Which is better? VTI (Total Stock Market ETF) offers broader exposure to the entire U.S. market, including small- and mid-cap stocks. VOO (S&P 500 ETF) tracks only the largest 500 U.S. companies, providing focused exposure to large caps. Both have a very low expense ratio (0.03%), excellent liquidity, but differ in diversification and volatility. Long-term investors typically prefer VTI, while those focusing on large-cap stability and liquidity favor VOO.

Table of Content

ETF Issuers & Investment Objective

Both ETFs are issued by Vanguard, a respected investment company known for low-cost index funds.

VTI (Total Stock Market ETF):

• Launched: May 24, 2001
• Index Tracked: CRSP US Total Market Index
• Structure: ETF (non-diversified), includes small, mid, and large-cap U.S. stocks (approx. 3,381 holdings)

VOO (S&P 500 ETF):

• Launched: September 7, 2010
• Index Tracked: Standard & Poor’s 500 Index
• Structure: ETF (non-diversified), strictly large-cap U.S. stocks (approx. 504 holdings)

Annual & Cumulative Returns

The performance differences between VTI and VOO are relatively minor, and this is primarily due to their shared exposure to the largest U.S. companies. Both ETFs include top-performing tech giants like Apple, Microsoft, and NVIDIA, which drive a significant portion of the total market’s gains.

While VTI holds a broader universe of stocks including mid- and small-cap equities these smaller companies make up a relatively small portion of the overall portfolio by market capitalization. As a result, they contribute only modestly to overall returns, especially during bull markets when large-cap stocks dominate.

Moreover, because the broader market tends to move in tandem with large-cap benchmarks over the long run, the return profiles of VTI and VOO tend to converge. VOO’s focus on large caps may outperform slightly during tech-driven rallies, while VTI may shine during periods when small-cap stocks surge, but over time, the differences are generally muted.

Risk Metrics

• Volatility measures how much a fund’s price fluctuates. Lower volatility is preferable for conservative investors.
• Sharpe Ratio evaluates return per unit of risk a higher Sharpe ratio indicates a better risk-adjusted return. VOO shows slightly lower volatility and higher risk-adjusted performance.

Dividend Yield & Growth

While both ETFs pay dividends quarterly, VOO’s slightly higher yield reflects its heavier concentration in mature, dividend-paying large-cap companies. Dividend yield is a critical metric for income-focused investors, though both funds are considered solid choices for reinvestment strategies.

Fees & Liquidity

With identical expense ratios, cost isn’t a deciding factor. However, VOO often sees higher daily trading volumes and tighter bid-ask spreads, making it slightly more suitable for high-frequency traders or large-volume transactions. Long-term investors may not notice this difference.

ETF Composition: Asset Classes

• VTI: Approximately 99% in U.S. stocks, with modest exposure to non-U.S. equities and minimal cash holdings.
• VOO: Around 99% in U.S. large-cap stocks, negligible international or cash exposure.

Both ETFs are equity-heavy, offering very limited exposure to other asset classes. VTI’s inclusion of smaller companies offers broader market coverage.

Regional Allocation

Both funds are overwhelmingly concentrated in North America (99%+), with almost no exposure to Europe, Asia, or emerging markets. For investors seeking international diversification, separate funds would be necessary.

Sector Weights

Both ETFs are tech-heavy, though VOO’s slightly higher allocation increases its sensitivity to that sector. VTI’s wider sector spread may reduce sector-specific risk.

Top 10 Holdings

The top 10 holdings in both ETFs include major U.S. corporations like:

• VTI: Top 10 = ~28% of assets
• VOO: Top 10 = ~34% of assets

Valuation & Growth Metrics

These metrics reflect valuation (lower generally means cheaper) and growth potential (higher indicates better growth expectations).

Which ETF Fits Your Portfolio - VTI vs VOO?

• Long-term Investor (Broad Market Exposure): Choose VTI for diversification across market caps.
• Trader (Liquidity & Large-Cap Stability): Choose VOO for tighter spreads and high trading volumes.
• Tax-sensitive Investor: Both ETFs are tax-efficient; choice depends on preference for broader (VTI) vs concentrated large-cap exposure (VOO).

SPY vs VOO: Which S&P 500 ETF Is Better in 2025? Performance, Fees & Holdings Compared

Comparing SPY vs VOO? You’re not alone, it’s one of the most debated ETF matchups for U.S. investors. Both funds track the S&P 500 index, but differences in cost, structure, and trading behavior can significantly impact your returns. This guide breaks down every metric that matters.

PinkLionJan Schmitz