VTI vs VOO: Which ETF Should You Choose?
VTI vs VOO: Which ETF Should You Choose? As a young investor, choosing the right investment vehicle can set the stage for your financial future. Two popular ETFs, VTI (Vanguard Total Stock Market ETF) and VOO (Vanguard S&P 500 ETF), are frequently compared. In this article, we analyze the key differences, historical performance, and reasons why both of these ETFs can be beneficial for your investment portfolio. Understanding VTI and VOO VTI offers broader exposure to the entire U.S. stock market, including small-cap and mid-cap stocks, while VOO focuses exclusively on the S&P 500’s large-cap stocks. This fundamental difference in exposure can significantly impact your investment results. Performance Analysis Historically, both ETFs have delivered impressive long-term returns. However, VTI's diversified approach often leads to higher volatility due to its inclusion of a wider range of stocks. Understanding your risk tolerance is crucial when choosing between the ...