The Vanguard Total World Stock ETF is a solid single ETF pick for those investors suffering from ticker overload. It's undervalued versus the U.S. stock market, by a significant margin, and has diversification benefits. It's a quality investment that we have a sizeable stake in and also recommend investing in.
ETFs: ETFdb Realtime Ratings
| Symbol | ETF Name | Support 1 |
|---|---|---|
| VXUS | Vanguard Total International Stock ETF | $64.92 |
| BNDX | Vanguard Total International Bond ETF | $56.94 |
| VEU | Vanguard FTSE All-World ex-US ETF | $62.70 |
| VSS | Vanguard FTSE All-World ex-US Small-Cap ETF | $134.07 |
VOO's Return on Equity is significantly better. VTI has almost twice as much AUM. This is probably because many investors who want to buy an S&P Index fund buy the SPDR S&P 500 ETF (SPY), even though it has a higher expense ratio, because it is preferred by those who trade in options.
VT is a good low-cost and easy way to invest passively in stocks with a long-term time horizon. Investors that already hold U.S. stocks may find VT offers only limited benefits of portfolio diversification since the fund includes a large allocation to widely held mega-cap companies.
Vanguard Total International Stock Index Fund (VGTSX) Vanguard Total Bond Market Fund (VBMFX)
Vanguard "going under" alone won't cause you to lose your investments. Absent accounting fraud, your investments are still there, untouched by Vanguard. Vanguard is a custodian, meaning that they hold and invest your assets, and take an agreed upon percentage of your assets every year to cover their expenses.
3 Vanguard ETFs to Buy and Hold for Decades
Yes, the S&P 500 is so important it grabbed two of the top three spots on this list! While the VOO ETF from Vanguard is an ideal investment for long-term ETF investors, SPY (sometimes called the “spy” or “spies) from State Street Global Advisors is one of the most heavily-traded ETFs on the market.
ETFs carry more flexibility; they trade like stocks and can be bought and sold throughout the day. Mutual fund shares price only once per day, at the end of the trading day, but may benefit from economies of scale. While Vanguard fees are low in many of its products, ETFs tend to be more tax-efficient.
Since it contains small- and mid-caps, which have outperformed large caps historically due to the Size factor premium, we would expect VTI to outperform VOO over the long term, and indeed it has historically. VOO has roughly 500 holdings and VTI has roughly 3,500 holdings, so VTI can be considered more diversified.
If you are looking for diversification, then investing in both VTO and VOO is definitely redundant, despite VTI holding 3677 stocks compared to 514 for VOO.
There is no advantage in holding both. I consider these equivalent but if available I prefer total market (I hold S&P500 in HSA as that's best available). ... 75-80% of VTI is the S&P 500, aka VOO. The point of VTI is to get some mid and small cap exposure to the tune of 20-25%.
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