Author Topic: VTI or VOO?  (Read 3793 times)

FIRERoad

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VTI or VOO?
« on: May 24, 2018, 04:11:18 PM »
Looking at these ETFs to make up large portion of IRA account and some of the ROTH.  Any thoughts on VTI vs. VOO?  Thanks.

2Birds1Stone

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Re: VTI or VOO?
« Reply #1 on: May 24, 2018, 06:07:58 PM »
http://lmgtfy.com/?q=VTI+vs.+VOO

[MOD NOTE:  Really not helpful.]
« Last Edit: May 25, 2018, 10:36:11 AM by FrugalToque »

FIRERoad

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Re: VTI or VOO?
« Reply #2 on: May 24, 2018, 08:52:13 PM »
http://lmgtfy.com/?q=VTI+vs.+VOO

Wow, you get the nicest people people on this site....  Was just looking for some thoughts from folks in this community not a smart ass response.  Thanks anyway...

terran

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Re: VTI or VOO?
« Reply #3 on: May 24, 2018, 09:26:26 PM »
Do you believe that the current 500 largest publicly traded businesses (measured by market cap = total value of their stock) in the US will continue to be the largest businesses for the amount of time you intend to invest, or do you believe that some the 3129 next largest will overtake them? Before you answer consider the current 10 largest companies in the country: Apple Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc., Facebook Inc., JPMorgan Chase & Co., Berkshire Hathaway Inc., Johnson & Johnson, Exxon Mobil Corp., Bank of America Corp. How many of those were even in business not that long ago?

Personally, I'll take VTI over VOO.

shinn497

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Re: VTI or VOO?
« Reply #4 on: May 24, 2018, 09:42:45 PM »
But if a business drops out of the SP500. It drops out of the index right? You invest in the fund not the business.

terran

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Re: VTI or VOO?
« Reply #5 on: May 24, 2018, 09:58:39 PM »
Right, so you're there for the fall, but not the rise of the one that takes its place (until it becomes number 500).

FIRERoad

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Re: VTI or VOO?
« Reply #6 on: May 24, 2018, 10:06:56 PM »
I'm leaning towards VTI for diversification and a little BND.

I like this explanation/reasoning best so far:

https://investorplace.com/2014/08/better-index-sp-500/

Thanks for the non-dick response.

Radagast

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Re: VTI or VOO?
« Reply #7 on: May 24, 2018, 10:30:26 PM »
The S&P500 is about 40% of the worlds market capitalization, selected by a committee to include most of the companies in the US greater than a certain size. If you already know the other 60% of the worlds stocks are going to underperform you might as well go VOO.

Heckler

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Re: VTI or VOO?
« Reply #8 on: May 25, 2018, 01:50:28 AM »
I use VTI 25% (currently @ 30%, but I’m letting it ride) for global diversity.
« Last Edit: May 25, 2018, 01:52:43 AM by Heckler »

h82goslw

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Re: VTI or VOO?
« Reply #9 on: May 25, 2018, 04:14:17 AM »
Look up “Bogleheads 3 fund portfolio” and you’ll see that VTI and BND are 2 of the 3 legs in that investment approach. 

2Birds1Stone

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Re: VTI or VOO?
« Reply #10 on: May 25, 2018, 06:32:53 AM »
Awe, that's cute. You asked for thoughts, and my thought was that there are already 100's of threads on the internet covering this topic.

FIRERoad

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Re: VTI or VOO?
« Reply #11 on: May 25, 2018, 08:02:25 AM »
Awe, that's cute. You asked for thoughts, and my thought was that there are already 100's of threads on the internet covering this topic.

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terran

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Re: VTI or VOO?
« Reply #12 on: May 25, 2018, 08:40:03 AM »
The S&P500 is about 40% of the worlds market capitalization, selected by a committee to include most of the companies in the US greater than a certain size. If you already know the other 60% of the worlds stocks are going to underperform you might as well go VOO.

Current size and future performance are not the same thing. A lot of the time current size actually hinders future performance. It usually helps with stability though. Or are you saying something else?

Radagast

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Re: VTI or VOO?
« Reply #13 on: May 25, 2018, 12:05:39 PM »
The S&P500 is about 40% of the worlds market capitalization, selected by a committee to include most of the companies in the US greater than a certain size. If you already know the other 60% of the worlds stocks are going to underperform you might as well go VOO.

Current size and future performance are not the same thing. A lot of the time current size actually hinders future performance. It usually helps with stability though. Or are you saying something else?
Sarcasm ;). The S&P500 is a great choice in 401k's where all other options are really expensive, but otherwise there's nothing special about it and you'd probably do better with 500 randomly selected stocks.

bacchi

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Re: VTI or VOO?
« Reply #14 on: May 25, 2018, 03:40:13 PM »
The S&P500 is about 40% of the worlds market capitalization, selected by a committee to include most of the companies in the US greater than a certain size. If you already know the other 60% of the worlds stocks are going to underperform you might as well go VOO.

Current size and future performance are not the same thing. A lot of the time current size actually hinders future performance. It usually helps with stability though. Or are you saying something else?
Sarcasm ;). The S&P500 is a great choice in 401k's where all other options are really expensive, but otherwise there's nothing special about it and you'd probably do better with 500 randomly selected stocks.

Yep. VTI is weighted but it has some small cap tilt to it, at least compared to the 500.