In this video I discuss the best of the best ETF's (Exchange traded fund) from VANGUARD VTI vs. VOO. These two ETF's provide the BEST portfolio diversification. You want a set and forget investment? Look no further. In almost every conversation I've had regarding ETF's, one if not both of these almost always come up in the discussion. So what is all the hype about? Which one should you own?

From the outside, these two ETF's are very similar. Similar growth rate, similar dividend yield, similar CAGR, even the same expense ratio which is super low at .03%. But, there is one major difference. One has over 3500 stocks and the other has 500. VTI is based on the CRSP total market index and the VOO is based on the popular S&P 500.

Both share the 11 sectors in diversification and even have similar sector weighing. However, VTI does not show that it has all 11 sectors. They for some reason don't show they contain the real estate aspect (REIT's). In this video, I prove that VTI does indeed contain REIT's, and some of the most popular ones to boot.

When comparing both stops for top 10 holdings, it appears they both contains the same exact top 10 holdings. MSFT, APPL, AMZN, BKR/B, GOOG, GOOGL, FB, PG, JNJ, V, JPM. However, both have different weights. Since the S&P does not have any stocks below a 5 billion market cap, the median market cap of the S&P stock is about 126 billion. Compare that with VTI with 3500 stocks which has a median market cap of about 80 billion. VTI contains several hundred companies with market cap's less than 5 billion. Some smaller than 1 billion even.

VTI was released in 2001 and VOO was released in 2010. So there is a 9 year gap between the two. The biggest issue is that we can't compare both VTI and VOO together in terms of how they did through the great recession. For 2019, both preformed similar with roughly about a 30% return. Even the 5 year was very similar.

Both the dividend yield and the 5 year CAGR are so similar they are not a determining factor when trying to decide which ETF you should buy. In my opinion, if you constantly invested in either VTI or VOO over a 20-40 year period, you would become wealthy, almost guaranteed.

After comparing both Vanguard's VTI and VOO in this video, I had to lean more towards going with VTI myself. I chose this one more for the diversification and the fact that is has been out since 2001. I know how it preformed over during the great recession. The performance history of the ETF is over 7% and that is okay in my book. This does not mean I wouldn't invest in VOO. It just means I have a slight bias towards VTI. Lastly, I don't recommend someone own both VTI and VOO in the same accounts. Given that VOO exists almost in its entirety in VTI already. If you want to own both, it makes the most sense to throw one in a taxable account and the other in a tax deferred account.


Please LIKE, COMMENT, and SUBSCRIBE if you enjoy this channel content. It helps tremendously! Also, please SHARE this video with your friends and/or family members. That would be much appreciated. Thank you for watching!

Books that I like:
Rich Dad Poor Dad: https://amzn.to/3c3HiAp
Education Of A Value Investor: https://amzn.to/2A1T6pQ

Production Equipment:
Drone: https://amzn.to/2XulUzn
Main Camera: https://amzn.to/2LSyDq0
Web Camera: https://amzn.to/36D9HMZ
Lav Microphone: https://amzn.to/3d0ntvn
Backup Lav Mic: https://amzn.to/2LWu8L2
USB Microphone: https://amzn.to/2ZzxmvV
Audio Recorder: https://amzn.to/3eic3TI
Tripod: https://amzn.to/3glTgbY
Main Lighting: https://amzn.to/2zskQUn
Travel Lighting: https://amzn.to/3gthMbw

// S U B S C R I B E
Subscribe ➡️ http://bit.ly/2SpZjkt

// F O L L O W
Instagram ➡️ http://bit.ly/2seB7Zi
Twitter ➡️ http://bit.ly/36EgbtT
Facebook ➡️ http://bit.ly/2S9oBEY
Website ➡️ http://hiddenfreedom.com

// C O N T A C T
Email ➡️ dave@hiddenfreedom.com


DISCLAIMER: Hidden Freedom, including but not limited to any guests appearing in Hidden Freedom videos, are not financial/investment advisors, brokers, or dealers. They are solely sharing their personal experience and opinions; therefore, all strategies, tips, suggestions, and recommendations shared are solely for entertainment purposes. There are financial risks associated with investing, and Hidden Freedom's results are not typical; therefore, do not act or refrain from acting based on any information conveyed in this video, webpage, and/or external hyperlinks. For investment advice please seek the counsel of a financial/investment advisor(s); and conduct your own due diligence and/or research.

AFFILIATE DISCLOSURE: Some of the links on this webpage are affiliate links, meaning, at no additional cost to you, we may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact our opinions and comparisons.

#PassiveIncome #VanguardETF #PortfolioDiversification