Vanguard VTI ETF and Vanguard VOO ETF are the best ETFs in the Stock Market for Index Funds investing in 2019. Which is the best ETF? VTI vs VOO - which ETF is the best investment? Let's compare both the Vanguard VTI vs VOO and find the best Index Fund for 2019.
FULL breakdown of VOO: https://goo.gl/5ETrCQ
In a Nutshell VOO tracks the S&P 500. VTI on the other hand is different - it's called the Vanguard Total Stock Market ETF. The name may be a bit misleading, because when they say total stock market, they actually mean the total US stock market. More specifically, it tracks the performance of the CRSP US Total Market Index. The fund is comprised of Large, mid, and small-cap equities so it gives you a wide range of exposure. They also offer a very low expense ratio MER 0.04% - some of the lowest in the industry. And of course they offer you exposure to tons of company - 3573 to be exact!
Now you may be wondering how to pick between VOO and VTI. I made a chart (shown in the video) for you guys to compare them side by side and you can see there that right off the bat, a big advantage that VTI has over VOO is the price/share is cheaper. So if you have a lower amount of capital, this may be the better, or in some case only option. MER's are comparable with both at 0.04% and the number of stocks obviously differs - VOO has 509 and VTI has 3573. This is where your own personal preference comes into play and I personally think exposure to the S&P 500 is more than enough diversification, as these are the 500 largest companies in America. But if you feel more comfortable holding 3500+ companies for more diversity, that's totally cool too - to each their own! And then the last thing here is Dividend yield - which VOO has at 1.52% and VTI is a bit higher of 1.79%. So VTI has the edge here and over time, this may actually make a big difference depending on the performance of each ETF.
So based on this comparison, you may already have a favorite here - but what are we all really here for? Let's not kid ourselves - we want to see how these 2 compare with the stock price performance over time!
Year to date, VTI does have the win here, coming in at 16.63% vs VOO's 16.20%. On a little longer time period though, this changes, with the 1 year performance of VTI coming in at 3.99%, but VOO beats it here with 4.57%. Even longer, at 5 years, VOO again comes out with the win at 52.94% vs VTI's 50.24%. But then if we go out and compare both from their inception, which is September 2010, after the recession in 2008, we can see the gap is closed off again with VTI coming in at 151.75% returns and VOO with 151.40% returns. So based on this data, you can see they are more or less the same over the long term. In the short term, VOO could out perform VTI, but if you're investing in these funds, it's a long term game.
Now the KEY thing when picking one is to ask yourself this question: Do I think that Large cap blue chip companies will perform better over the long term? Or do I think small and medium caps will out perform. The reason I say this is because when you compare the top 10 holdings of each fund, you will see that VOO does have a large weight on the top 10, coming in at 21.80% of the overall weight, vs VTI's top 10 at 17.90%. So if you believe these 10 names will continue doing well and will outperform majority of smaller companies out there, VOO may be the better investment, just because of the large weight these companies have in each of these 2 ETFs.
Now I present the question to you - VTI or VOO? Comment down below and let's see which ETF has more support! And if you think this video would be useful for a friend, make sure to share it with them so you can help them achieve a stable financial future!
#Vanguard #VTI #VOO #PositiveInvesting
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