Investment
Features
FeesSafety
Academy
More
Pluang+
|
Home/News Feed/Vanguard Total Stock Market ETF lags S&P 500 ETF despite same fees, mainly due to tech stock concentration.
VTI
$375.43
+$0.09 +0.02%

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

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 and VTI ETFs overlap 85%, duplicating your investment and reducing diversification benefits.

VOO and VTI ETFs overlap 85%, duplicating your investment and reducing diversification benefits.

Buying both Vanguard's VOO (S&P 500 ETF) and VTI (Total Stock Market ETF) may seem diversified, but about 85% of VTI's holdings overlap with VOO's top stocks. This duplication means investors pay fees twice for largely the same exposure, reducing the...

Market News
Neutral
4 days ago
banner-footerbanner-footer

Invest & Trade with
#1 Award-Winning Investment Super App