VOO vs VTI: Key differences and performance data (2026)

When investing in index ETFs, picking funds with the right balance of diversification, market exposure, and low costs is essential. In this context, two of the most popular ETFs are VOO (Vanguard S&P 500 ETF) and VTI (Vanguard Total Stock Market ETF), both managed by the renowned Vanguard. Together, they represent over $3.5 trillion in combined assets under management – making them among the largest equity ETFs in the world.

Although both ETFs offer ultra-low costs and broad US equity exposure, they differ in underlying index, level of diversification, and volatility – so the right choice depends on your goals and strategy.

VOO tracks the S&P 500, while VTI tracks the CRSP US Total Market Index. The first holds the 500 largest US companies (large-cap focus), while the second holds essentially the entire US equity market – roughly 3,500+ stocks spanning large, mid, and small caps.

Both funds share the same 0.03% expense ratio (TER), and historical returns have been remarkably close – VOO has slightly outperformed over the past decade thanks to the dominance of US large-cap stocks, while VTI offers somewhat broader diversification and higher exposure to smaller-cap names.

In this article, we cover the key differences and characteristics of these ETFs so you can choose the one that best suits your goals and strategy.

VOO vs VTI compared in a nutshell

Here’s a summary of the key differences between VOO and VTI to help you make an informed decision:

Overview

VOO: Vanguard S&P 500 ETF

The Vanguard S&P 500 ETF (VOO) was launched by Vanguard in September 2010. It tracks the performance of the S&P 500, the benchmark index composed of the 500 largest US-listed companies, weighted by market capitalisation. The focus on large-cap companies makes VOO particularly suitable for investors seeking exposure to established, household-name US businesses – companies like Apple, Microsoft, NVIDIA, Amazon, Alphabet, Meta, Berkshire Hathaway, and Tesla, which collectively dominate the index’s weighting.

VTI: Vanguard Total Stock Market ETF

The Vanguard Total Stock Market ETF (VTI) was launched by Vanguard in May 2001. VTI tracks the performance of essentially the entire investable US stock market – around 3,500+ companies spanning large, mid, and small caps.

As one of Vanguard’s flagship funds, VTI has become one of the largest and most widely held ETFs in the world, with approximately $2 trillion in assets under management as of 2026. Investors are drawn to VTI for its broad market coverage and its ability to provide exposure to the full breadth of the US equity market in a single fund – including high-growth small-cap names that aren’t in the S&P 500. Note that approximately 82% of VTI overlaps with VOO, since the S&P 500 represents the bulk of US equity market capitalisation; the differentiation comes from the additional ~18% exposure to mid and small caps.

Performance

Overall, VOO and VTI both deliver returns very close to their underlying indexes, with minimal tracking error. VTI typically tracks its index marginally closer than VOO does, partly thanks to VTI’s higher securities lending income (a benefit of holding thousands of small and mid-cap names that are in demand from short-sellers).

In the table below, you can see their average 1, 3, 5, and 10-year annualised returns against the underlying indexes of both ETFs. Keep in mind that the performance shown is net of expenses, and past performance is not a reliable indicator of future returns.

Index tracked

VOO aims to match the performance of the S&P 500 index, while VTI seeks to track the performance of the CRSP US Total Market Index.

If you’re interested in investing in the US stock market, these two options let you choose between the 500 largest US-listed companies (VOO) or essentially the entire US stock market (VTI – around 3,500+ constituents as of 2026).

As a result, there are differences in the composition and weighting of each fund, particularly around the inclusion of mid-cap and small-cap exposure – as you can see in the breakdown below.

Top 10 holdings VOO

Top 10 holdings VTI

VOO and VTI are both physically replicated ETFs – they hold the actual underlying stocks of the S&P 500 and CRSP US Total Market Index respectively, at weights that closely mirror each index’s market-capitalisation weighting. This contrasts with synthetic ETFs, which use derivatives (typically total return swaps) to replicate index performance rather than holding the underlying securities directly. For long-term US equity investors, physical replication is generally considered preferable because it removes counterparty risk and gives you genuine ownership exposure to the underlying companies.

The fund manager

Both ETFs are managed by Vanguard, one of the world’s largest and most respected asset managers. VTI was launched in May 2001, and VOO in September 2010. As of 2026, Vanguard manages over $10 trillion in assets globally across its mutual fund and ETF range – second only to BlackRock among global asset managers. Founded in 1975 by John C. Bogle, Vanguard pioneered the low-cost index fund and continues to be widely associated with the passive investing approach.

Distribution

Both VOO and VTI are distributing ETFs that pay dividends on a quarterly basis. This distribution policy can provide a modest, steady income stream from your investment. However, it’s worth noting that the dividend yield on both ETFs is relatively low (around ~1% annually as of 2026), since the underlying S&P 500 and total US market are dominated by growth-oriented companies (technology, communications) that typically reinvest earnings rather than paying high dividends.

VOO distribution

VTI distribution

If you’re not a US resident, dividends paid by US-listed ETFs are subject to a 15% US dividend withholding tax under most tax treaties (or 30% if your country doesn’t have a tax treaty with the US), which further reduces the effective yield. UK and EU investors should also note that VOO and VTI are US-listed ETFs not available for retail purchase under PRIIPs regulation – so European retail investors typically need to use UCITS equivalents (e.g., VUSA, VUAG, SPYL, CSP1 for S&P 500 exposure; VWRA or IWDA for broader global/US exposure) instead.

Total Expense Ratio (TER)

The Total Expense Ratio (TER) reflects the annual cost an ETF charges for portfolio management, administration, marketing, distribution, and other operational expenses. This is one of the most important metrics for any long-term investor, since it directly reduces your net return – the higher the TER, the lower the compounded return for the investor over time. For long-term portfolios, even small differences in TER can meaningfully affect end-of-horizon wealth.

The TER for both ETFs is identical at 0.03% – among the lowest in the global ETF industry. Both Vanguard ETFs share the same operational efficiency advantages, and over a 30-year holding period this 0.03% cost compounds to a negligible drag of around 0.9% on total returns – meaning effectively all of the index’s gross return flows through to the investor.

Fund allocation

As mentioned above, VOO holds the 500 largest US companies (purely large-cap), while VTI provides exposure to the entire US stock market – approximately 82% large-cap, 12% mid-cap, and 6% small-cap.

Since mid-cap and small-cap stocks tend to be more volatile than large-cap stocks, VTI is generally slightly more volatile than VOO. On the other hand, with around 3,500+ holdings vs. ~503 for VOO, VTI offers significantly greater diversification across the breadth of the US equity market. This difference matters mostly in the long run – particularly during periods when small and mid-cap stocks outperform (as happened in 2002-2007 and parts of 2020-2021), VTI tends to outperform VOO. When large caps dominate (as in 2014-2021 and 2023-2024), VOO tends to outperform VTI.

Sector diversification

Both the S&P 500 and the CRSP US Total Market Index are diversified across all eleven GICS sectors (Information Technology, Financials, Healthcare, Consumer Discretionary, Communication Services, Industrials, Consumer Staples, Energy, Utilities, Real Estate, and Materials). Both ETFs replicate their underlying index weightings closely, but small differences emerge due to VTI’s exposure to thousands of mid and small-cap stocks that aren’t in the S&P 500 – which slightly increases VTI’s allocation to sectors where smaller companies are more concentrated (such as Real Estate, Industrials, and Financials).

Sector allocation: VOO

Sector allocation VTI

Cheapest brokers to invest in VOO and VTI

Now that we’ve covered the differences between VOO and VTI, let’s look at where to actually invest in them. We’ve reviewed the most relevant ETF brokers offering access to VOO and VTI, focusing on cost, platform quality, and product range. The four standout options:

1. eToro: best for social trading and commission-free real ETF investing.
2. Interactive Brokers: best for the largest global ETF offering, lowest FX fees, and access to 150+ markets.
3. Public.com: best for US-resident investors wanting commission-free trading and access to an investor community.
4. Webull: best for low-commission ETF trading with strong mobile and desktop platforms.

Disclaimer: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.

Conclusion

When comparing VOO and VTI, both ETFs offer compelling benefits for long-term investors – and given their 0.99 correlation, the practical difference is often smaller than it first appears.

VOO has slightly outperformed historically thanks to the dominance of US large-cap stocks (particularly the mega-cap tech names), and offers concentrated exposure to the 500 most established US companies. VTI provides broader diversification by covering essentially the entire US stock market (~3,500+ stocks), including mid and small caps that can outperform during specific market cycles.

A quick framing to help narrow things down:

• Choose VOO if: you want pure, focused S&P 500 exposure at the lowest possible cost, you’re comfortable with concentrated large-cap exposure, or you want to pair it with separate small/mid-cap funds for more granular control.
• Choose VTI if: you want the broadest possible US equity exposure in a single fund, you believe small and mid-caps will play a meaningful role in long-term returns, or you prefer a “set and forget” total-market approach.
• Either works well if: you’re building a long-term, low-cost US equity allocation – both ETFs are excellent core holdings.

Ultimately, the right choice depends on your personal preferences, investment objectives, and broader portfolio strategy. Consider factors like risk tolerance, investment horizon, and how either ETF fits alongside your other holdings before making a decision.