VTI vs VOO: Total Market or S&P 500?
Both are core Vanguard US equity ETFs at 0.03% expense ratio. The only real difference is whether you want ~500 large caps (VOO) or the entire US market including small and mid caps (VTI).
VTI holds ~3,700 US stocks including small and mid caps; VOO holds ~500 large caps (the S&P 500). Performance has been nearly identical long-term because mega-caps dominate both. Same expense ratio, same Vanguard. Pick VTI for total-market completeness, VOO for strict S&P 500 exposure.
Quick stats
| Metric | VTI | VOO |
|---|---|---|
| Price | $350.53 | $652.78 |
| TTM yield | 1.08% | 1.09% |
| Real yield (NAV-adj.) | 1.49% | 1.51% |
| NAV change (period) | 38.8% | 38.2% |
| Annualized volatility | 1357.8% | 1327.2% |
| Distribution frequency | quarterly | quarterly |
| Expense ratio | 0.03% | 0.03% |
| Inception | 2001-05-24 | 2010-09-07 |
| AUM | ~$400B | ~$1.3T (family) |
| 1Y dividend CAGR | 2.2% | 5.4% |
| 3Y dividend CAGR | 5.7% | 5.9% |
| 5Y dividend CAGR | 6.3% | 5.9% |
| 5Y price CAGR | 10.2% | 11.3% |
Strategy & holdings
VTI tracks the CRSP US Total Market Index — every investable US stock, weighted by market cap. VOO tracks the S&P 500 — the 500 largest US companies. Because market-cap weighting means mega-caps dominate in both, ~85% of VTI is the same holdings as VOO. The difference is the long tail of small and mid caps in VTI.
CRSP US Total Market Index — ~3,700 US stocks, all market caps.
S&P 500 — 500 largest US companies by market cap.
Because VTI is cap-weighted, the S&P 500 companies that make up VOO represent ~85% of VTI's weight. The 3,200 smaller companies in VTI collectively only account for ~15% of the fund. That's why VTI and VOO track each other with correlations above 0.99 and annual returns typically within 0.5% of each other. In periods when small caps outperform, VTI wins. In periods when mega-caps dominate (the last decade), VOO has slightly edged VTI. It's a distinction without much practical difference for most investors.
Yield & distributions
Both yield roughly 1.2-1.5%. VTI's yield is marginally lower because small-cap stocks pay lower dividends on average. Both pay quarterly with similar ex-dividend patterns.
Total return & NAV
Over 10+ year rolling windows, VTI and VOO have produced nearly identical total returns, with whichever is ahead depending on whether small caps had a good decade. The recent decade favored VOO slightly because mega-cap tech dominated. Historical pre-2015 data often favored VTI slightly when small caps were in favor.
Risk & volatility
VTI has marginally higher volatility than VOO because of its small-cap exposure, but the difference is small (~0.5-1% higher annualized vol). Drawdowns in bear markets are typically 1-2 percentage points deeper for VTI, again because small caps sell off harder. Neither fund has any meaningful risk distinction that matters for a long-term holder.
Tax treatment
Both are textbook tax-efficient. Vanguard's patented share class structure means effectively zero capital gains distributions. Qualified dividends at LTCG rates. Both work beautifully in taxable accounts.