---
title: 'VTI vs VOO: Why They Perform Almost the Same'
source: 'https://youtube.com/watch?v=cc1LGTLNRSY'
video_id: 'cc1LGTLNRSY'
date: 2026-08-05
duration_sec: 79
---

# VTI vs VOO: Why They Perform Almost the Same

> Source: [VTI vs VOO: Why They Perform Almost the Same](https://youtube.com/watch?v=cc1LGTLNRSY)

## Summary

This video explains the surprising similarity between two popular Vanguard ETFs, VTI and VOO, despite their different stock counts. It clarifies why they perform nearly identically and offers guidance on choosing between them for long-term investing.

### Key Points

- **VTI and VOO performance similarity** [00:00] — VTI includes 3,500 stocks while VOO has 500, yet they perform almost exactly the same because VOO makes up 82% of VTI.
- **Overlap and diversification misconception** [00:13] — Owning both VTI and VOO is redundant; the extra 3,000 companies in VTI only account for 18% of the fund, so you're essentially buying the same large caps twice.
- **Weighting and top holdings** [00:27] — Both funds weight by company size, and the top holdings (NVIDIA, Apple, Microsoft) are identical, leading to similar returns.
- **Historical returns comparison** [00:39] — Over the last 10 years, VOO is up about 15.2% per year and VTI about 14.7%, a difference of only half a percentage point, and they move together 99% of the time.
- **Recommendation for long-term investing** [01:10] — Choose one fund: VTI if you want small/mid-cap exposure, VOO for pure S&P 500. Consistency matters more than the slight difference.

### Conclusion

For long-term investors, the choice between VTI and VOO is less important than consistent investing; pick one based on your preference for small/mid-cap exposure and stick with it.

## Transcript

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,
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
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
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
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
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.