VOO vs VTI which one would you choose?

What is the best ETF index fund? There are so many ETFs to choose from, but which one would you choose? VOO vs VTI has been some of the top ones that so many people talk about.

What is an index fund?

Before we start our great debate, let’s break down what an index fund truly is. An index fund is a mutual fund that passively tracks a certain index. The big indexes that we have today would be the S&P 500 and even the Nasdaq 100 that tracks the top 100 tech companies. 

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Why VOO and VTI? The reason I have picked these two index funds is to show you the most popular ones that people talk about. 

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I talked about index funds having low-costs. Both VOO and VTI have an expense ratio of 0.03%. On a $10,000 investment, you will be paying $3. That is so minimal in the grand scheme of things. 

VOO vs VTI in low-costs

I believe in not chasing returns, but oftentimes the hype of certain funds can get people excited. Chasing returns is a loser’s game, and I prefer to stick with some low-cost index funds.

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Diversification is a big thing for VOO and VTI Diversification is everything. If you have one or two stocks and one goes belly up, well you are left with half of your investment. VOO has about 500 companies in it, which gives it a pretty good level of diversification. VTI has about 3700 companies in it, giving it a bit more diversification. 

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Let’s Break down VOO and VTI:

VOO is with 500 different companies, and VTI has around 3700 different companies. If you were looking for diversification this is almost a no brainer looking at these numbers, but let’s really dive into these numbers.

The top 10 is exactly the same in both VOO and VTI. VTI’s top 10 owns about  23.7% of the portfolio. VOO’s top 10 owns about 28.9% of the portfolio. 

The Numbers of Stock Holdings

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