[00:00] VTI includes 3,500 stocks and VOO has 500. So why do they perform almost exactly the same? The answer is because VOO, the Vanguard S&P 500 ETF makes up the majority of VTI,
[00:13] which is the Vanguard total market ETF. So 82% of VTI is just VOO already. So which one is the actual best one to invest in? This actually threw me for a loop when I was starting to invest. You actually don't want to choose both because they have some overlap. So here's what you should
[00:27] know. Both funds weight by company size, so when you're investing in VTI, even though there are 3,000 extra companies you get exposure to, they only add up to about 18% of VTI. The top stocks
[00:39] in both of the funds are identical. You'll get roughly the same amount of NVIDIA, Apple, and Microsoft by investing in either. This is why over the last 10 years, VU is up around 15.2% per year and VTI is up around 14.7% per year. That's only about half a percentage apart and they move
[00:55] together 99% of the time. So if you own both thinking you're diversified, you might want to think again, you're just buying the same large caps twice. For long term investing, just go with one or the other. If you want some small or mid cap exposure, then go with VTI. But if you want
[01:10] pure S&P 500, just go with VOO. The difference between them doesn't matter as much as just investing consistently. I hope this helps follow for more.