Should I invest in both VOO and VTI? (2024)

Should I invest in both VOO and VTI?

Or, you could also invest in both, for example, by putting half in VOO and half in VTI. Here's a summary of which one to choose: If you want to own only the biggest and safest stocks, choose VOO. If you want more diversification and exposure to mid-caps and small-caps, choose VTI.

Should you invest in VTI and VOO?

However, if you know that you'd like a bit more exposure to smaller and medium-sized companies or just want to invest in more stocks overall, VTI is your best bet. VOO, meanwhile, is the better option for investors who want to focus heavily on large cap companies.

Does VTI and VOO overlap?

VTI holds all the stocks that VOO has, but VOO does not hold all the stocks VTI has. VTI vs VOO overlap is significant — 87% as of this article. That means the funds are about 87% identical.

Is VOO or VTI more tax efficient?

Tax Efficiency – Tie

ETFs tend to distribute comparatively fewer capital gains to shareholders – these same gains are simply more challenging to manage efficiently from a mutual fund. Overall, VOO and VTI are considered to have the same level of tax efficiency.

Should I be investing in multiple ETFs?

Experts agree that for most personal investors, a portfolio comprising 5 to 10 ETFs is perfect in terms of diversification.

What is the average return of VOO vs VTI?

Average Return

In the past year, VOO returned a total of 34.25%, which is slightly higher than VTI's 33.86% return. Over the past 10 years, VOO has had annualized average returns of 13.00% , compared to 12.38% for VTI. These numbers are adjusted for stock splits and include dividends.

Is it wise to invest in VOO?

Vanguard S&P 500 ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VOO is a great option for investors seeking exposure to the Style Box - Large Cap Blend segment of the market.

What is the 10 year return on VOO vs VTI?

Over the past 10 years, VOO has outperformed VTI with an annualized return of 12.94%, while VTI has yielded a comparatively lower 12.29% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.

Is it bad to have overlapping ETFs?

Investors often wonder how much overlap is acceptable. While there is no universal threshold, a common guideline suggests keeping overlap between ETFs below 50 percent. In essence, if two ETFs share more than 50 percent of their holdings, it is deemed high overlap, which diminishes diversification benefits.

Does VOO or VTI pay more dividends?

Dividend Yield

VTI and VOO offer almost the same dividend yields—1.42% and 1.45% respectively as of July 31, 2023. Expressed as a percentage, dividend yield tells an investor how much they will earn in dividends each year for every $1 they invest in an ETF.

Is VTI too diversified?

VTI is an extremely diversified fund. Its large amount of holdings reflect the entire universe of investable U.S. securities. The fund has exposure to small-cap stocks which can be more volatile than mid- or large-cap holdings. The fund has a beta of 1.0 when compared to the larger market.

What is the ETF tax loophole?

That means the tax hit from winning stock bets is postponed until the investor sells the ETF, a perk holders of mutual funds, hedge funds and individual brokerage accounts don't typically enjoy. The ETF tax loophole works only on capital gains, though.

Does VTI outperform spy?

SPY - Performance Comparison. The year-to-date returns for both investments are quite close, with VTI having a 9.86% return and SPY slightly higher at 10.20%. Both investments have delivered pretty close results over the past 10 years, with VTI having a 12.36% annualized return and SPY not far ahead at 12.90%.

Which is better VTI or VOO?

Both have the same expense ratio and similar dividend yield, so you should choose whichever one you prefer based on the fund's strategy. If you only want to own the biggest and safest companies, choose VOO. If you want broader exposure and more diversification, choose VTI.

What is the 70 30 ETF strategy?

This investment strategy seeks total return through exposure to a diversified portfolio of primarily equity, and to a lesser extent, fixed income asset classes with a target allocation of 70% equities and 30% fixed income. Target allocations can vary +/-5%.

What is the most profitable ETF?

Is VTI still a good investment?

VTI's analyst rating consensus is a Moderate Buy. This is based on the ratings of 3686 Wall Streets Analysts.

Is VTI good for Roth IRA?

Roth IRAs allow you to avoid paying taxes on investment returns by investing after-tax income now. VTI and SPAB are good options for your starting stock and bond funds, and are likely to be representative of the kinds of funds offered by Edward Jones.

Should I invest in QQQ or VOO?

QQQ - Performance Comparison. In the year-to-date period, VOO achieves a 10.40% return, which is significantly higher than QQQ's 8.57% return. Over the past 10 years, VOO has underperformed QQQ with an annualized return of 12.94%, while QQQ has yielded a comparatively higher 18.63% annualized return.

What is the 5 year forecast for VOO?

Based on our forecasts, a long-term increase is expected, the "VOO" fund price prognosis for 2028-03-01 is 551.296 USD. With a 5-year investment, the revenue is expected to be around +53.15%. Your current $100 investment may be up to $153.15 in 2028. Get our PREMIUM Forecast Now, from ONLY $7.49!

Is VOO a good investment for beginner investors?

A great way to simplify is by investing in exchange-traded funds (ETFs), which are funds that trade on the stock market like individual stocks. If you're a beginner looking for the best way to invest in stocks, look no further than the Vanguard S&P 500 ETF (VOO -0.01%).

Should I put most of my money in ETFs?

You expose your portfolio to much higher risk with sector ETFs, so you should use them sparingly, but investing 5% to 10% of your total portfolio assets may be appropriate. If you want to be highly conservative, don't use these at all.

Where will VTI be in 5 years?

According to the latest long-term forecast, Vanguard Total Fund VTI price will hit $300 by the middle of 2025 and then $350 by the middle of 2026. Vanguard Total Fund VTI will rise to $400 within the year of 2027, $450 in 2028, $500 in 2029, $600 in 2031 and $700 in 2035.

How many times a year does VTI pay dividends?

VTI Dividend Information

VTI has a dividend yield of 1.03% and paid $2.68 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 22, 2024.

What is VTI average return for 30 years?

Vanguard Total Stock Market (VTI): Historical Returns

In the last 30 Years, the Vanguard Total Stock Market (VTI) ETF obtained a 10.49% compound annual return, with a 15.52% standard deviation.