Quick Verdict
- Choose VOO if: You want a pure large-cap U.S. portfolio built on the S&P 500 and are comfortable with its heavier tilt toward the biggest companies.
- Choose VTI if: You want exposure to the entire U.S. stock market, including mid-, small- and micro-cap stocks, in a single fund.
- Key difference: VOO holds about 505 large-cap stocks, while VTI holds about 3,519 stocks across every size tier, with the same 0.03% fee.
- Winner for most investors: VTI, by a narrow margin, because it owns everything VOO does plus the rest of the market. VOO has posted slightly higher trailing returns, so this is a close call.
Table of Contents
VOO vs VTI: Key Differences at a Glance
Both funds are low-cost Vanguard index ETFs, and the table below shows where they actually diverge.
| Feature | VOO | VTI |
|---|---|---|
| Full name | Vanguard S&P 500 ETF | Vanguard Morningstar Total Stock Market ETF |
| Issuer | Vanguard | Vanguard |
| Benchmark | S&P 500 Index | Morningstar US Total Market Index |
| Inception | Sep 7, 2010 | May 24, 2001 |
| Structure | Open-end fund | Open-end fund |
| Expense ratio | 0.03% | 0.03% |
| Number of holdings | ~505 | ~3,519 |
| Dividend yield (12-month trailing) | ~1.06% | ~1.06% |
| Dividend frequency | Quarterly | Quarterly |
| AUM | ~$1.03 trillion | ~$689 billion |
| Average daily volume | ~7.1 million shares | ~3.0 million shares |
Cost, yield and issuer are identical, so the decision comes down to index design. The real question is whether you want large caps only or the whole market.
Expense Ratio Comparison
Both ETFs charge 0.03% a year, so cost does not separate them. On a $10,000 investment, that is about $3 per year. On $100,000, it is about $30 per year.
The compounding effect is small but real. Assume a hypothetical 7% annual return before fees on $100,000 over 30 years. A 0.03% fee would leave the balance roughly $6,400 lower than a fee-free result, and that drag applies equally to VOO and VTI.
Neither fund is the “expensive” one here. Vanguard’s structure and scale let it pass savings to shareholders, which is why both sit near the bottom of the industry fee range. Many comparable funds cost several times as much.
If you are choosing between these two, the fee should not influence your decision. If you are comparing either one to an actively managed fund charging 0.50% or more, the cost gap matters far more than anything separating VOO and VTI. Because the fees match, the other differences below deserve your attention.
Performance Comparison
| Period | VOO | VTI |
|---|---|---|
| 1-year | +15.70% | +15.33% |
| 3-year annualized | +22.85% | +22.32% |
| 5-year annualized | +13.75% | +12.56% |
| 10-year annualized | +15.29% | +14.70% |
VOO has posted higher returns across every window shown. That gap is not a fee effect, since both charge 0.03%. It comes from what each index owns.
The S&P 500 has returned +13.79% annualized over five years, and VOO delivered +13.75%. The Morningstar US Total Market Index returned +12.56%, matching VTI. Both funds tracked their indexes closely.
Over this period, large-cap stocks outpaced small and mid caps, which gave the S&P 500 an edge. Leadership can rotate, and small- and mid-cap stocks have outperformed large caps in other periods. Past performance does not predict future results, so these figures describe what happened, not what comes next.
Holdings and Portfolio Overlap
VOO holds about 505 companies in the S&P 500. VTI holds about 3,519 stocks, which includes nearly all of VOO’s names plus roughly 3,000 mid-, small- and micro-cap companies. By weight, the two funds overlap by about 89%, with third-party estimates ranging from roughly 85% to 89%.
| Holding | VOO | VTI |
|---|---|---|
| NVIDIA (NVDA) | 8.39% | 7.13% |
| Apple (AAPL) | 7.38% | 6.63% |
| Microsoft (MSFT) | 5.78% | 5.20% |
| Amazon (AMZN) | 3.71% | 3.30% |
| Alphabet Class A (GOOGL) | 3.07% | 2.76% |
| Broadcom (AVGO) | 2.54% | 2.28% |
| Alphabet Class C (GOOG) | 2.45% | 2.18% |
| Meta Platforms (META) | 2.43% | 2.18% |
| Micron Technology (MU) | 1.83% | 1.64% |
| Tesla (TSLA) | 1.52% | 1.37% |
The same ten companies lead both funds. They total about 39.1% of VOO versus 34.7% of VTI. Technology is also larger in VOO, at 40.48% versus 38.10%.
For investors, this means owning both funds adds little diversification. VTI is simply a slightly more diluted version of the same large-cap core.
Market-Cap Coverage: Large-Cap Focus vs. Total Market
The most important difference beyond cost is how far down the market-cap ladder each fund reaches. VOO stops at roughly the 500 largest U.S. companies. VTI keeps going into mid-, small- and micro-cap stocks.
That extra reach comes with trade-offs. Smaller companies can offer different growth and valuation profiles, but they also tend to swing more in price. In VTI, they make up only a modest share of total weight, so their influence on returns is limited.
VOO, by contrast, is more concentrated in a handful of mega-cap names. That concentration helped returns recently, but it also means a downturn in the largest stocks would hit VOO somewhat harder.
On trading, both are highly liquid. VOO averages about 7.1 million shares a day and VTI about 3.0 million, and either is easy to buy and sell for ordinary investors.
Which Is Better for You? Our Verdict
VOO may be the better choice if you:
- Want a portfolio defined by large, established U.S. companies
- Prefer the S&P 500 as a widely recognized benchmark
- Already hold separate small- or mid-cap funds and don’t want overlap
- Value its higher recent trailing returns, while understanding they may not repeat
VTI may be the better choice if you:
- Want one fund covering the entire U.S. stock market
- Prefer broader diversification across company sizes
- Like the idea of capturing small- and mid-cap leadership if it returns
- Want the simplest possible “set it and forget it” U.S. equity holding
Because the two funds cost the same and overlap by about 89%, either one can serve as a core holding. VOO has delivered somewhat higher returns recently, driven by large-cap strength. VTI could suit investors who want to avoid betting on any single market-cap tier.
Neither is clearly superior. Your preference for concentration versus breadth should decide it.
→ Read our VOO review | → Read our VTI review
Frequently Asked Questions
Is VOO better than VTI for long-term investors?
Neither has a structural advantage, since both charge 0.03% and track broad U.S. indexes. VOO has posted higher returns over the 1-, 3-, 5- and 10-year periods shown, but that reflects large-cap outperformance, which may not persist. Long-term investors could reasonably choose either.
Can I hold both VOO and VTI?
You can, but it adds little. With roughly 89% overlap by weight, holding both mostly duplicates the same large-cap stocks. A single fund, or one fund plus a specific small-cap or international allocation, is usually simpler.
Why is the more expensive fund more expensive?
Neither is more expensive, because both VOO and VTI carry a 0.03% expense ratio. Vanguard’s large asset base and low-cost structure keep fees minimal on both. If you see a cost difference quoted elsewhere, check the date and source.
Which pays higher dividends, VOO or VTI?
They pay about the same. Both show a trailing 12-month yield near 1.06% and distribute dividends quarterly. Actual payouts vary by period, so check each fund’s current distribution history.
Does VTI’s small- and mid-cap exposure make it riskier than VOO?
Not necessarily. Smaller stocks are typically more volatile, but they make up only a modest share of VTI’s weight. VOO’s heavier concentration in the largest companies is its own form of risk, so neither fund is clearly safer.
Data as of October 2026. Sources: issuer websites (Vanguard) and finance.yahoo.com.
Disclaimer: The information in this article is for educational and informational purposes only. It does not constitute financial, investment, or tax advice. Past performance is not indicative of future results. Investing in ETFs involves risk, including possible loss of principal. Always consult a qualified financial advisor before making investment decisions.