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Home/News Feed/Vanguard Total Stock Market ETF lags S&P 500 ETF despite same fees, mainly due to tech stock concentration.
VTI
$379.30
+$0.23 +0.06%

Vanguard Total Stock Market ETF lags S&P 500 ETF despite same fees, mainly due to tech stock concentration.

Market News
06 Aug 2026
24/7 Wall Street
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Neutral
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Vanguard's Total Stock Market ETF (VTI) charges the same low fee as its S&P 500 ETF (VOO) but has consistently underperformed it over 1, 5, and 10 years. Although VTI holds around 3,600 stocks, its market-cap weighting means the top five tech giants dominate returns, making it effectively similar to VOO but with weaker results. Investors pay for broad diversification but mostly get a tech-heavy portfolio with additional tax costs from quarterly payouts. For true diversification, investors might consider equal-weight S&P 500 funds or other ETFs outside mega-cap tech stocks.

More News (VTI)

VOO's low fee hides heavy concentration in just 7 mega-cap tech stocks, raising risk for investors.

VOO's low fee hides heavy concentration in just 7 mega-cap tech stocks, raising risk for investors.

Vanguard's S&P 500 ETF (VOO) is known for its very low fee of 0.03%, but the real cost lies in its heavy concentration in just a few mega-cap tech stocks like Apple, Microsoft, and NVIDIA. These seven stocks now make up nearly 29% of the fund, increa...

Market News
Neutral
2 days ago
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