VTI vs VOO: Total Market or S&P 500? (The Final Verdict)
It is the “Coke vs Pepsi” of the investing world. Reddit fights over them daily. But the truth is, their performance is 99% identical. Here is the only real difference you need to know.
Identical Fees, Different Ingredients
Both are Vanguard ETFs. Both cost almost nothing to hold. The difference is in the “tail.”
| Feature | VOO (S&P 500) | VTI (Total Market) |
|---|---|---|
| Expense Ratio | 0.03% | 0.03% |
| Number of Stocks | ~500 | ~3,700 |
| Small Cap? | No (0%) | Yes (~14%) |
| Dividend Yield | ~1.5% | ~1.5% |
| Preference | Winner |
|---|---|
| Simplicity | VOO |
| Max Diversity | VTI |
Don’t Be a “Collector”
We see portfolios like this all the time: “I own 50% VOO and 50% VTI to be safe.”
This is pointless.
VTI is basically 85% VOO. If you buy both, you are just buying the same Apple and Microsoft shares twice. You are complicating your portfolio for zero benefit.
Rule: Pick one and marry it.
Pro Tip: The Perfect Tax Partners
Remember Tax Loss Harvesting? (See Article 010). This is where VTI and VOO shine.
The Switch Strategy
1. Sell VOO to lock in the tax loss.
2. Immediately buy VTI.
They are “different enough” to avoid the Wash Sale Rule, but “similar enough” that your portfolio performance won’t change. They are the perfect dance partners.