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.

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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.

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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.

(Video) VTI vs VOO What You Need To Know Before Choosing
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Is VOO or VTI better for growth?

VOO - Performance Comparison. The year-to-date returns for both investments are quite close, with VTI having a 9.95% return and VOO slightly higher at 10.40%. Over the past 10 years, VTI has underperformed VOO with an annualized return of 12.29%, while VOO has yielded a comparatively higher 12.94% annualized return.

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Does VOO or VTI pay more dividends?

VTI - Dividend Comparison. VOO's dividend yield for the trailing twelve months is around 1.33%, less than VTI's 1.36% yield.

(Video) VOO vs. VTI: S&P 500 Index versus Total Stock Market Index Fund
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What is the average return of VOO vs VTI?

Average Return

In the past year, VOO returned a total of 33.19%, which is slightly higher than VTI's 32.75% return. Over the past 10 years, VOO has had annualized average returns of 12.96% , compared to 12.32% for VTI. These numbers are adjusted for stock splits and include dividends.

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Is it smart to invest in VOO?

Summary. Investing in the S&P 500 index fund, such as VOO, is a winning long-term strategy. Historical data shows that the market has consistently gone higher despite obstacles and downturns.

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Is 4 ETFs too many?

Aim for around 10 to 20 diversified ETFs that align with your goals and risk tolerance. There is no fixed number of ETFs that can be classified as “too many” as it ultimately depends on an investor's individual goals, risk tolerance, and investment strategy.

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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%.

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Is 20 ETFs too much?

How many ETFs are enough? The answer depends on several factors when deciding how many ETFs you should own. Generally speaking, fewer than 10 ETFs are likely enough to diversify your portfolio, but this will vary depending on your financial goals, ranging from retirement savings to income generation.

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Should I invest in QQQ or VOO?

VOO is a broader and more diversified index fund of 500 stocks. QQQ has historically outperformed VOO by a significant margin but has higher concentration risk and volatility (measured by beta). Both funds are excellent, low-fee stock index fund options for your portfolio.

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Why VTI is the best?

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.

Should I invest in both VOO and VTI? (2024)
What is the most profitable ETF to invest in?

  • Invesco QQQ Trust (QQQ)
  • Vanguard Information Technology ETF (VGT)
  • Invesco AI and Next Gen Software ETF (IGPT)
  • MicroSectors FANG+ Index 3X Leveraged ETN (FNGU)
  • Vanguard U.S. Quality Factor ETF (VFQY)
  • WisdomTree Japan Hedged Equity Fund (DXJ)
  • iShares Core US Aggregate Bond ETF (AGG)
Mar 5, 2024

Should I switch from VOO to VTI?

Investor Preferences: VOO is ideal for those seeking alignment with the performance of large-cap companies in the S&P 500, while VTI suits investors looking for more comprehensive market exposure, including smaller companies with potential for growth.

Is VTI diversified enough?

VTI's long-term track record and its broad and comprehensive group of holdings make it a great building block for an investor who is just starting out. The ETF can also be a solid option for longtime investors who simply want to add instant diversification to their portfolios.

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.

Which is better Vanguard VTI or VOO?

VTI is a total U.S. market fund and holds more than 3,500 stocks. VTI is better diversified and benefits from small and mid-cap stocks that grow into large caps. VOO is less diversified, tracking the performance of the S&P 500 Index. VOO excludes small and mid-cap stocks.

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.

Is VTI good for a brokerage account?

VTI can be a good investment option for those looking for broad exposure to the U.S. stock market. It offers diversification, flexibility, and cost-effectiveness. However, it's crucial to remember that investing in VTI or any other financial instrument involves risks.

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!

How much does VOO pay in dividends per year?

VOO Dividend Information

VOO has a dividend yield of 1.33% and paid $6.41 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 the downside of owning an ETF?

ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses. Unlike mutual funds, ETF shares are bought and sold at market price, which may be higher or lower than their NAV, and are not individually redeemed from the fund.

What is the 4% rule ETF?

Known as the 4% rule, Bengen argued that investors could safely set their annual withdrawal rate to 4% of their initial retirement pot and adjust it for inflation without running out of money over a 30-year time horizon.

Why are 3x ETFs risky?

A leveraged ETF uses derivative contracts to magnify the daily gains of an index or benchmark. These funds can offer high returns, but they also come with high risk and expenses. Funds that offer 3x leverage are particularly risky because they require higher leverage to achieve their returns.

What is the 3% limit on ETFs?

Under the Investment Company Act, private investment funds (e.g. hedge funds) are generally prohibited from acquiring more than 3% of an ETF's shares (the 3% Limit).

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