By Jim Sloan, SA contributor.Summary
° VOO is based on the S&P 500 and VTI on the Total Stock Market, adding the 22% of stocks not included in the 500; long term they have performed similarly.
° Both are market cap weighted and heavily tilted toward the 10 largest stocks which are 28.5% of VOO and 23.4% of VTI.
° Jack Bogle preferred VTI because it contained "everything." Warren Buffett put the S&P 500 in his will for his wife, perhaps because it is tilted toward large cap growth.
° Longer term charts show similar returns while a one year chart clearly shows the outperformance of smaller caps, thus VTI, starting September 2020 with recognition of economic growth.
° There are several quirks in the way these index ETFs are put together, plus some interesting differences in statistical metrics and industry composition; VOO is more tax efficient.ARTICLE