Vanguard VTI vs VOO | Vanguard Index Funds for Beginners 2021
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- Опубликовано: 7 фев 2025
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In this video we are talking about Vanguard index funds, specifically the top 2 Vanguard ETF's: Vanguard S&P 500 ETF (VOO) and Vanguard Total Market ETF (VTI). We will be breaking down the ETF performance, underlying holdings, expense ratios, and everything in between.
Vanguard S&P 500 ETF (VOO)
Invests in stocks in the S&P 500 Index, representing 500 of the largest U.S. companies.
Goal is to closely track the index’s return, which is considered a gauge of overall U.S. stock returns.
Offers high potential for investment growth; share value rises and falls more sharply than that of funds holding bonds.
More appropriate for long-term goals where your money’s growth is essential.
Characteristics as of 11/30/2020
Number of stocks: 509
Fund total net assets: $620.2 billion
Net assets of 10 largest holdings: 28.2%
Month-end 10 largest holdings
(28.20% of total net assets) as of 11/30/2020
1 Apple Inc.
2 Microsoft Corp.
3 Amazon.com Inc.
4 Alphabet Inc.
5 Facebook Inc.
6 Berkshire Hathaway Inc.
7 Johnson & Johnson
8 JPMorgan Chase & Co.
9 Visa Inc.
10 Procter & Gamble Co.
Vanguard Total Stock Market ETF (VTI)
Seeks to track the performance of the CRSP US Total Market Index.
Large-, mid-, and small-cap equity diversified across growth and value styles.
Employs a passively managed, index-sampling strategy.
The fund remains fully invested.
Low expenses minimize net tracking error.
Characteristics as of 11/30/2020:
Number of stocks: 3586
Fund total net assets: $1.0 trillion
Net assets of 10 largest holdings: 23.1%
Month-end 10 largest holdings
(23.10% of total net assets) as of 11/30/2020
1 Apple Inc.
2 Microsoft Corp.
3 Amazon.com Inc.
4 Alphabet Inc.
5 Facebook Inc.
6 Berkshire Hathaway Inc.
7 Tesla Inc.
8 Johnson & Johnson
9 JPMorgan Chase & Co.
10 Visa Inc.
Although ETFs and mutual funds share many similarities, there are a couple of distinguishing characteristics that may make ETFs more attractive to some investors, including Lower investment minimums when you first start investing & Real-time pricing every time you buy and sell. Not only do ETFs provide real-time pricing, they also let you use more sophisticated order types that give you the most control over your price. If you want to keep things simple, that's OK! Just stick with a market order. It'll get you the best current price without the added complexity. A mutual fund wouldn't be a suitable investment. Regardless of what time of day you place your order, you'll get the same price as everyone else who bought and sold that day. That price isn't calculated until after the trading day is over.
Most ETFs are index funds (sometimes referred to as "passive" investments), including our lineup of nearly 70 Vanguard index ETFs. A mutual fund could also be a suitable investment.
Good question. It depends on one's timeline to retireement or early retireement. If someone has an early head start at investing (starting in high school or sooner), go with VTI. Someone in their late 20s or later should go with VOO and add a growth ETF (VUG or VGT).
Thank you for this piece of insight. I would've never thought of this!
@@Oeis2782 What about this advice made sense to you?
What? This isn't remotely true
@@JohnChoidotOrg Young People = take more risk
Older people = take less risk
I just started investing in TD and bought 3 shares of VTI. I use any additional funds left over after investing in my 403b and bills so it takes me more time to save for VOO so I opted for VTI. Since they don’t allow for fractional shares it’s more of a challenge for me to buy VOO. But after your video I am reassured that opting for VTI is still a decent choice. Thank you for such a well explained video. New subscriber here! Happy Holidays!
AWESOME! Thank you so much for subscribing! GREAT JOB on your retirement journey! =)
Fidelity offers fractional shares and they support VOO and VTI.
I would recommend VTI for the reasons that:
1. You have a better chance of owning a winning firm earlier during its growth stage prior to joining the S&P 500. Tesla is a good example in this video.
2. VTI has all firm sizes so small cap firms which may grow faster than large cap firms are included. VOO is only the top 500 firms which tends to large cap firms by its very nature.
Good video
VOO is better
I'm choosing to invest in VGT which is the technology sector, however I also want to add either VOO or VTI as well, which would be a etf to work alongside VGT
This is exactly the video I was looking for, love how you get right into it, videos linger then 10 mins I usually skip!!! 😀
Glad it was helpful Flaca! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Very good your channel !! I am Brazilian and started this year to invest in american stock exchanges. Like you I also love Vanguard.😂😁
Awesome Richard! THANK YOU for watching!
Great video! I used to have both, but as their performance are quite the same and the top 10 are almost the same I decided to keep VOO in my portfolio.
Thanks for sharing Amaury and THANK YOU for watching!
Why both when they are so similar?
@@MichaelCTruth that´s why I sold VTI. When I bought I was unaware of that.
Where I can buy it?
@@MarcialGomesJr vti hold exciting riskier stocks, voo was not holding Tesla in early days
Yes! An entire year later ☺️ thanks for your update!!!! (Much appreciate) moving accordingly with due diligence 😁
Thanks for this. For someone like me who has no idea what any of this means, your video helps to break it down!
one problem about owning ETFs you can't automatically buy through a brokerage firm you can only do the index funds.. so if you want to automatically do dollar cost averaging the set it and forget it type of approach you have to do an index fund
I have VOO it has been a good investment. Bought it back in May when it was down.
GREAT TIMING! Thank you for watching!
Is it dumb to buy now ?
@@sleepinggiant575 The earlier u start the better
@@chrissymarsha2282 VOO is an ETF as opposed to a Mutual/Index Fund, so there are no minimum investments. It is currently valued at 382.95 per share, but if your brokerage account allows for fractional investing, then you can put in as much as you'd like.
@@askmeificare5557 thank you !
I’m 100 percent in VTI in my Roth. 30 more years until I retire.
EXCELLENT! Sounds like you will be just fine! THANK YOU for watching and leaving your $0.02 in the comments!
Hey Fattie, do you mean 100% VTI as in that is all you hold on your Roth ?
@@Sun_shyne that would be correct
@@fattie2550 Thank you :)
@@Sun_shyne super lazy portfolio. Single Fund Portfolio.
Joe that's like saying apples or oranges which is better. There both good.
Technically, oranges are better but I get your point... =P THANK YOU for watching Billy!
Which one is more volatile? If the s/p 500 etf is mimicking the s/p then how is the s/p performance over the last 40 years say.
I’d pick the one with less volatility.
I got VOO and QQQ (50/50) in my individual. VTI and VXUS in my Roth. 💰
Not bad.
What about the risk factor on both? Thanks!
How will these two etfs perform during a commodity bull market🤔
If you just want to buyt it once and forget about it kind of investment, VTI is the way to go, i am a non US residence, i've been investing on VTI for almost 10 years now, i just buy when i have cold cash lying around each month, i never even care when it's in it's all time high, i just buy it when i have cash, and i've still made a significant return for the past 10 years, even beating my friends who are in active fund or trading
I own vti for the exact example you gave with tesla if I had voo instead I would of missed out on that growth thai year .... also S/O Joe you were the reason I choose vti from watching a video you made a year ago.
GREAT JOB Nicholas and great to hear that you got in a year ago! THANK YOU for watching!
@@AverageJoeInvestor what’s your thoughts on stock market possibly over valued? And maybe a market crash
I have 5k invested in VOO. I'm up 40% on this ETF.
What are your thoughts on me selling VOO and buying NUSI and JEPI. I would be able to purchase more shares and collect a little more dividends.
My logic is that VOO is expensive in terms of price per share and to really make money on dividends I would have to have significant shares.
HI should i split my money into 2 and invest in both VTI and VOO
Thank you so much
That was a simple explanation of index funds.
I’ve owned VOO until recently, then bought VTI and VEA/VWO at an allocation of 80/16/4. Do you suggest FZROX over VTI? Do you agree with Jack Bogle that I should ditch the international ETFs and go 100% domestic? Thanks for the video and God Bless
HI WILLIAM! GREAT QUESTION! You don’t lose much an expense ratios by owning VTI versus the Fidelity zero fund and you get more holdings as well. I personally do not own any international funds. I’m not saying there’s not value there I just choose not to do so. Hope that helps! Thank you for watching and leaving a comment! I really appreciate it.
Good advice Joe, I totally agreed. In my TAXABLE ACCOUNT, I only have VTI, ONEQ and VTWO, easy set up and forget it.
Can i invest on tickers SCHB and SPLG simultaneously?
Would you suggest buying only this for my Roth IRA?
I’m holding a lot of VOO and SPYG
hi
is it wise to have invested in both of these ETF's or should I only invest in one of them ?
thanks
tom
Look at BRKB and compare. Out preforms them all.
I understand that VTI provides diversification, but not all companies are gems, in fact many end up going belly up. I prefer VOO as companies had to work for a seat in that ETF and have proven themselves. I think a better comparison would be VOO vs VONE. Vanguard ETF VONE is Russell 1000 Index Fund that includes the 500 companies in VOO plus the next 500 companies after that. Its a blend of Value + Growth stocks.
This is so helpful, learning tremendously! Now I need to open an account and invest. And I am leaning towards VTI based on previous comments. Thank you.
AWESOME! I agree that VTI and VOO total returns are VERY SIMILAR and VTI offers a bit more diversification than VOO. THANK YOU for watching Razberri K and for leaving your $0.02 in the comments! 😎👍🏻
So if I put 5M in this account, my return will be 14% annually? (700k)?
You can buy Vanguard funds in a Fidelity account, it doesn't make sense to due to fees, but it's possible.
THAT'S TRUE JEFF. Instead, you would be best buying Vanguard ETF's in Fidelity for no fees. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I am hesitant to purchase because VOO is currently at 424.28 and VTI is 238.89, however I can still benefit despite the cost per share? correct?
Best to start NOW rather than try to time the market. I am still actively contributing to all accounts right now. You can purchase fractional shares of either investment with a brokerage like Fidelity, M1 Finance or Robinhood. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor thank you for your prompt response.
I think (but what do I really know) that this post-covid era will change the world economy. As such, I think there will be more Tesla-like companies growing and moving towards S&P 500 status. This is why think VTI will the better option for the next 5 years or so.
Interesting Perspective! THANK YOU for watching Keith and for leaving your $0.02 in the comments! 😎👍🏻
Which would ride out a crash best?
I own VOO but was considering VTI, VYM and a few others.
VOO and VTI are very similar. VYM is a dividend play and not my favorite to be honest with you. IF you are looking at a dividend ETF SCHD is the top-performing one from my recent video breaking down 11 different Dividend ETF's. Hope that helps! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I prefer to keep the ETF for a slightly lower fee and liquidity. But I treat it like the fund, a long-term hold.
Unfortunately I hold most of it in my Vanguard Roth IRA account and they don’t allow fractional shares, so I either have to pony up exact change for the share are use the fund with the brokerage.
Considering switching to Fidelity but if I do that I know I will be messing around buying and selling and over handling the bar of soap since I am constantly on my Fidelity account throughout the day checking in and adding a few bucks here and there when I can
Haha, I can appreciate that. THANK YOU for watching Francisco!
I bight voo until it got to expensive and have started getting schd solely because I can by them, where as voo got to pricy for me to be able to cost dollar average each check. Gonna shift to vti I think, but I got some more research before I do. SCHD seems to do similarly to voo but also gets good dividends.
VTI on the Roth, VOO on the taxable account. 👍
AWESOME -- THANK YOU for watching and leaving your $0.02 in the comments!
why do you say that? what makes voo better for a taxable account than in a roth?
@@robbbyyy25 You’re actually fine with both in either account type. The thing is that VOO is a little bit more aggressive, while VTI is more stable across time in my opinion. VTI won’t suffer as much from a crash, as VOO might. Another thing you might wanna consider is starting with VOO on the tax protected account and eventually transitioning into VTI as you grow older. Others just keep VOO for life which is perfectly fine. 👍😉
@@e.manuel is it wrong to get both?
Do you have video to explain what is tracking error?
GREAT QUESTION! I don't have a video on that but I will add it to the list of videos ideas for the future. =) THANK YOU for weighing in and for leaving a comment! =)
Hi there i just subscribed to your channel , i am new to investment i want to open a custodial account for my grandson ,what platform do you recommend i have been looking at vanguard and stockpile any suggestions ? thank you
Thanks, I needed this. I learned alot from this 1 video. I am leaning toward VTI..
Great analysis and shirt! I've subscribed :).
AWESOME! THANK YOU for joining the Average Joe Investor community! I appreciate it! 😎👍🏻
Question for all, if I been buying VOO for a year and 3 months 20k would you advise switch to VTI because of its diversification and price??
No
Hi, newbie here should I buy the vti at the current price $203.29 ?or wait until it goes down a little bit.
I am a HUGE BELIEVE in buying now rather than WAITING for the LOW which is hard to pinpoint. Long term the stock market goes up. That's just me though. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Thank you
Why: is VOO so expensive? Wouldnt it make sence to invest in a cheaper ETF?
I traded all of my VTI for VOO for the 0.13% greater distribution yield (~div %). But, yes, identical performance over multiple time frames to 10 years. VGT and FTEC for 2x the growth, but lesser div pay.
HI KARL -- You are correct. VGT and FTEC are definitely a play on information technology which should continue to do well though I have my doubts they can perform at the level seen over the past 10 years. THANK YOU for watching and for leaving a comment. =)
Curious, were you looking for cash flow? Otherwise the NAV would be reduced by the distribution to fund holders and the total return would be a wash.
The last 10 years have favored large cap and shouldn't be part of your long-term investment decision. It's an investment anomaly
What’s the difference between VT and VTI? I’m invested in VT (as advised by my financial advisor) but I’m wondering what the comparison is.
What are your thoughts on the total world index fund?
HEY THERE! My preference is to stay 100% domestic but I don't think its wrong to own international funds. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
The majority of my portfolio (about 1/3) is in VT and VTI. I expect this reach about 60% over the next 18 months through dollar cost averaging.
I am 55yrs old and I have Vti eft's , should replace the Vti with Vym. I will be saving for 10 to 15 yrs?
How long have you held vti
If both are returning similarly , with same expense ratios, VTI is the smarter investment, since you get higher diversification
If bother are returning similarly with the same expense ratio then it doesn’t matter which one. 😊
@@benoutdoors Course it does, since it is about the future
I am new to investing and this was very helpful thank you very much.
Thank you for the video
Any idea how do i buy these ETF if im not in the US
GREAT QUESTION! I am not sure to be completely honest with you. Sorry I cannot be of more help. THANK YOU for watching Georgia-PRO and for leaving your $0.02 in the comments! 😎👍🏻
Both Charles Schwab and Vanguard have international brokerage accounts.
So right now if you had about $460 to invest, do you buy 2 shares of VTI or 1 share of VOO?
2022 follow up video?
안녕하세요. 여긴 한국입니다.
저는 Vti etf, 215주 모았습니다.
존보글님 존경합니다.
THANK YOU for watching!
오 멋져요. 저는이제 2주모았네요 ㅋㅋ
Should I dollar cost average or lump sum
Studies have shown lump sum investing is more beneficial more of the time.
GREAT QUESTION! Generally its best to get money into the market as you have it available. That being said, its never fun to put a bunch of money in at the top of the market. I actually have some capital gains from the sale of a house I want to invest but I am concerned about dropping it all in right away... I may dollar cost for a month or 2 and see how things look coming out of January 2021. THANK YOU for watching!
@@AverageJoeInvestor totally agree. Mathematically speaking if you’re going to leave it in there for the long term it’s more profitable just a lump sum dump.
But I would hate my life if I see it drop into a 10% correction that takes 2 years to recover😂
But then again dollar cost averaging is going to provide similar long-term results and is psychologically nicer. Either way as long as you’re getting it in, it’s all good in the neighborhood!
Thank you so much for your great videos, you’ve really helped me out when I started watching you back in May. I didn’t know which way was up or down with investing and you really help me get some of the basics down. Hat tip to you, sir
im still conflicted as to which one to invest in for in my roth ira!! im taking an aggressive approach so its gonna be 100% of one or the other (but their fidelity counterpart bc i prefer fidelity over vanguard)! analysis paralysis is so real lolol
I just got Fidelity too (switched over from Robinhood), what is the Fidelity counterpart of VOO?
@@markkohenkadosh9739 nice!! i believe it is FXAIX
@@x3loveee Thank you! Just took a look I believe you’re right! Question on a different topic, why hasn’t VOO or FXAIX included Tesla in their holdings yet?
@@markkohenkadosh9739 thats a really good question!! id love to know the answer to that too ahahah
GREAT QUESTIONS and POINTS -- Unfortunately Fidelity doesn't have a Total Market OR S&P 500 ETF though they have BOTH for indexed mutual funds. Tesla was officially added 12/18/2020 to the S&P 500 and brokerages may be slowly adding the stock. I would imagine in January 2021 we will see updated weighting. Hope that helps!
This is a great video. Thanks for all the info. I am new to your channel but not to vanguard. I am a buy and hold investor. So I’m in to vanguard index mutual funds only not ETFs.
Awesome! I hold Vanguard ETF's but I hold them long-term and use my M1 Finance Roth IRA to hold the ETF's, something I could not do with Vanguard Indexed Mutual Funds. THANK YOU for watching!
VOO is kind of misleading. meaning not enough data yet. 2010 to now has been fantastic for major markets. that's why I wouldn't go much with VOO as far as comparing it with VTI. Anyways as usual excellent content! Thank you.
Good point Izik! It's true we don't often have 10 year periods like the past 10 years and it is not reasonable to assume that the markets will grow like they have. That being said, the S&P 500 and the Total Market index funds are BOTH a great fit for the Average Joe who has 15-20 years to invest. Hope that helps! THANK YOU for watching Izik and for leaving your $0.02 in the comments! 😎👍🏻
Hi Joe, just found your channel two days ago. You put out great content, thank you! What are your thoughts on choosing a total market index fund vs 3 cap index funds (small, mid, large)? I’m leaning toward opening my Roth IRA with Fidelity.
I went with VTI. Nice video.
How does RGAGX compare to VTI i went 50% in each in my company matched union 401k do you think these are good funds to go all in on also I am 38
Just bought one share of average joe at 47.1k subs. What kind of returns should I expect??
What are you thoughts on VT or VEU to diversify? I have VOO and VTI, but am now considering selling one and getting an int'l ETF instead. I’m wondering, which should I keep? VOO or VTI? 🤔
VT = VTI + VXUS. I prefer to hold them separately since it may even be cheaper, you can control your allocation, and lastly you can tax loss harvest more easily(there are good reasons to think that lots of VXUS and VTI will not always go up together).
The literature shows that the benefit of holding international stocks starts to decrease rapidly after about 40%, and so I wouldn't ever hold more than that since they are more expensive to hold than US stocks.
VEU only holds large and mid cap companies and so has less than half the holdings of VXUS.
@@carriermodulation, thanks so much! I really appreciate it. So a simple portfolio of 60% VTI + 40% VXUS makes the most sense? 🤔Please let me know I would love to act on this! 🙌🏻
@@CinemaTeacher VT itself is currently 60/40. It is a matter of personal preference, but again 40 is about the maximum you would want internationally based on the data. One nice thing about keeping them separate is that you can can change the weighting as time goes on by only contributing new funds to the ones you want in a taxable account, or just rebal in a tax-advantaged account.
The most common choices are 70/30, 60/40, and 60/30/10(bonds). Some people now even do 50/50 as they see international as a good value. I personally am honestly more at 80/20 but I am seriously looking to get more international after 2020's runup.
@@carriermodulation, thanks so much! I really appreciate your help! 🙏🏼
VOO
2 questions: 1. VOO distributing or accumulating? 2. VTI distributing or accumulating? Many thanks!
I am not quite sure what you are asking. Perhaps you can clarify for me. THANKS!
I decided to invest in both. That way I can be in a little bit of everything.
I'm in VTI, I don't find the need to be in both VTI and VOO because they both overlap in its Large Cap Stocks. I like VTI because you are more diversified not only in Large Cap Stocks, but also in Mid and Small Cap Stocks as well (hence the name Total Market Index Fund). VOO has a total of about 508 Large Cap Stocks whereas VTI not only has 508 Large Cap Stocks but also about 3099 Mid and Small Cap Stocks for a total of about 3607 Stocks in total.
GREAT COMMENT MIKE! I agree that you get a tad more diversification than VOO when you own VTI, but that doesn't mean you get a LOT OF Diversification. THANK YOU for watching Mike Em and for leaving your $0.02 in the comments! 😎👍🏻
VOO is better
I don't understand the chart. It shows 1 year return is 19.12% but the 10 year return is 14.04%. The 14.04% is the ANNUAL return rate or it means it grew 14% in 10 years?
GREAT QUESTION! When it says 1 year return 19% it means over the past year the performance was 19%. For the 10 year return it is telling you that the average return every year was 14.04%. That doesn't mean it was 14% every year. Some years may have been +32% and others -9%. The average annual return though would be 14.04%. Over the 10 years the growth was 14.04% * 10 = 140.40%. Did I answer your question? Let me know if you have any follow-up questions. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Thank you!
Great video! Is there anything with better returns than VTI/VOO for a ten year investment?
GREAT QUESTION GW! Over the past 10 years, growth funds have outperformed the S&P 500 and total market but there is no guarantee that will happen during the next 10 years. IF YOU THINK IT WILL HAPPEN, then MGK might be a great bet for you. THANK YOU for watching GW and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor what about VUG ?
Are there any Fidelity equivalents to Voo and VTI? and if so, do you already have a video comparing them you can link?
Unfortunately no. They do have the NASDAQ Index which is ONEQ but they are pretty limited from an ETF perspective. They DO partner with iShares so you can capture the S&P 500 through IVV. They do have a number of other ETF's available as well. Here is the link for the video to Fidelity ETF's that I created: ruclips.net/video/tUsFTN7iDcQ/видео.html
Fidelity uses Ishares for core ETFs.
ITOT = VTI
IVV = VOO
IXUS = VXUS
AGG = BND
Do you use fidelity or vanguard for your brokerage?
Hi Arshia! I have a Fidelity Brokerage account for my Dividend Stock Portfolio and I have a Roth IRA with M1 Finance where I hold Vanguard ETF's, including VOO.
@@AverageJoeInvestor thank you for your time and your great content!
Hi Joe. Do you think it's a bad idea or a very costly idea taking all your money from a target-date retirement fund and putting them in a mutual fund? Thanks!
Hey Jove! THANK YOU for asking a great question. I am not a financial advisor but I can tell you that it definitely depends on your own comfort level in managing your investments as well as your risk tolerance and your timeline for when you need the money. FOR ME, I do not use target date funds because I like managing index funds in my accounts and dividend stocks in my brokerage account. That being said, Target date funds work perfectly for some people. Hope that helps!
Your target date fund is a mutual fund. You don't give us nearly enough information to give you any advice. I suggest you pick up a book by John boogle the founder of vanguard
Nice video man...If you pay say, £100 a month into this, do you incur a charge each time?
GREAT QUESTION JAMES! It depends on who you use as a broker. There are many here in the United States that do not charge any transaction costs. Not sure exactly where you are located though. Thank you so much for watching and for leaving a comment! I appreciate it.
This Joe is going to buy shares of VOO ASAP.
AWESOME JOSE! =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Is it ok if I just own both vti and voo and invest in both $25 each every week Or should I just keep one of them and invest $50 on one a week? Sorry for the weird question I’m fairly new in this. Thanks in advance
Hi Charli, there is no real penalty for doing this though I imagine the performance will be very similar. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
IMHO sticking more with a consolidated single fund allows it to grow larger and bring bigger investment returns instead of having your cash divided. Having said that, VTI and VOO are both perfectly good and you can have a bit of both if you want.
Hi Joe.. Great video. Do you think it’s a great idea to buy VOO with EToro? For long term investment?
THANK YOU for that feedback Jeffrey! To be completely honest I had never heard of Etoro before you asked your question, LOL. In this low-fee environment where you can trade/buy/sell investments for free with so many different brokerages, what value do you see in using this platform aside from the fact they focus on cryptocurrencies? Just my $0.02. =) THANK YOU for watching Jeffrey Makuchete and for leaving your $0.02 in the comments! 😎👍🏻
Does VTI also work on compound interest?
ABSOLUTELY! Both VTI and VTO have underlying companies that pay dividends, which is why they both pay a dividend themselves. As you reinvest dividends into the company, you increase your shares which increases your overall results and your dividend income. =)
@@AverageJoeInvestor thanks! I subbed
@@AverageJoeInvestor Im getting the picture now, so basically the dividends being paid by this Etf is the Compound Interest? And it is a persons job to reinvest it into the etf so that it could grow more thus overtime turns thousands to millions?
@@mrpax2303 You can set up automated dividend reinvesting depending on your broker and avoid the manual aspect altogether.
Another great video. Before it was vtsax/vtiax vs vtwax (VT). Now thinking I need to take a closer look into vtsax (VTI) vs vfiax (VOO) and adding mid and small market caps, maybe emerging.... ughhhh. Do you have a vid on this? 25-35yr horizon (hoping for FI/RE). I’m seeing too much day trading and stock bs when I try and really look at etfs vs MFs over the long term. You have a video on the differences which helped me understand what etfs are, but the internet is littered with day trading individual stocks.
I know my issue with VT vs VTSAX was the international heaviness. Also not a lot of data yet on VT.
I AGREE there is WAY TOO MUCH day trading going on. Investing in the stock market, especially for the Average Joe out there, needs to be a long-term wealth play. I personally hold in my Fidelity Roth IRA the following investments:
30% Large Cap ETF (Schwab)
30% Mid Cap Index Fund (Fidelity)
30% Small Cap Index Fund (Fidelity)
10% International Index Fund (Fidelity)
You can do the same or similar set up with Vanguard if you wanted to and perform just about the same. I liked the lower expense ratios with Fidelity. I have a little international exposure but its limited. I have a 25 year investing timeframe. Hope that helps Chele and please don't hesitate to follow-up with any questions or concerns. THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor I saw you get vanguard funds through your (prior) employer plan, super jealous of that! Thanks for sharing your breakdown 😊Vanguard seems like an all around good brokerage. Thanks for helping so many of that are trying to understand a foreign language- your channel is gold!
Found a video you talked about all the vanguard funds btw- gave some insight to these questions. Always leaving a like and shout out! Love the “6 portfolios” one!
thanks for all the great information that you provide
THANK YOU so much for that feedback Victor! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
Which one would you choose VTI or VOO? He > i awesome!!
THANKS JAMES! I appreciate that! I think you can go either way. IF you prefer a bit MORE concentration in the top holdings you go with VOO but if you prefer a tad more diversification then you go with VTI. Hope that helps! THANK YOU for watching james and for leaving your $0.02 in the comments! 😎👍🏻
I just started buying both because I'm new and didn't know what to invest in lmao
There’s lots of overlap between the two, but you can’t go wrong owning both either.
No worries -- NO HARM DONE! If you want to diversify out, buy all of one or keep it as is you will still be successful. THANK YOU for watching!
Same😂
I figured that VTI would have a little small cap exposure since VOO was basically just Apple and Amazon and Facebook ha ha
Lol. Me too!
I had both VTI and voo but after hearing about the overlapping in having both i sold voo a couple days ago lol.vti is the total stock market for the U.S. so i hope i don't go wrong.
Noticed your shirt and loved it! God bless you for sharing in this video! He came to set us Free! Happy New Year!
THANK YOU Brian!
Hail Satan.
Great video. I am retiring and can no longer contribute to my retirement accounts. I have heard ETF’s are good options for taxable savings. Do you agree?
GREAT QUESTION KATHY! It certainly depends on the ETF's that you choose and what your goals are. If you are trying to generate recurring income then perhaps a Dividend ETF might be a good fit. IF you are looking for growth then perhaps an ETF that tracks a growth index such as Vanguard's VTI/VOO/MGK/VUG/VBK may be a good fit. Hope that helps and please let me know if you have further questions! =) THANK YOU for watching Kathy and for leaving your $0.02 in the comments! 😎👍🏻
Bullseye 🎯!!! Just the video I wanted to see!! Thank you sir!!
My pleasure Mark!! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I have voo vti vig and vug.. Vanguard the best etfs.. Great review
Vanguard or Fidelity?
Vanguard is better
GREAT QUESTION JAKE! I am certainly partial to Vanguard ETF's because you can buy them with any brokerage AND there is a comprehensive offering available. That being said, Fidelity has an EXCELLENT index fund offering with expense ratios LOWER than Vanguard's indexed mutual funds and ETF's. Ultimately, it's going to be personal preference. I hope that answers your question Jake. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@@AverageJoeInvestor Thank you for response & informative videos!
(PS- Sorry for the repeat question comment. I just wanted to be sure you saw it & that I found out your answer.)
Great vid! But what if you plan on cashing out all your ETF investment, what would be your strategy? Are you gonna pull it out slowly? Or just take on the 23.8% tax?
GREAT QUESTION! I guess it would depend a lot on when I needed the money and IF I needed it all at once. Depending on when the capital gains were earned I may owe long-term or short-term capital gains which are taxed differently. I would say every scenario is different. Hard to answer and I don't mean to dodge your question.
If you want out & you’re nowhere near the 1 year holding period you might as well take it all out at once. Also, if you have any realized losses you can offset them with any gains you have from the ETF & avoid all taxes.
Also, if you don’t have a ROTH IRA you should open one up so you can cash out of any ETF at any time with zero taxes. What’s funny is many ppl use their tax accounts to trade & ROTH IRA to invest long term when it would be better to do the opposite (for tax purposes) imo.
I am a beginner and ended up getting half and half my shares in voo and VTI but I’m thinking it’s kind of silly to double dipping in both. Would you just suggest choosing one vs both?
GREAT QUESTION! I wouldn't say you are suffering as a result but it IS a little bit repetitive. I think either way you will be just fine. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I’m thinking of putting half into NUSI & half into individual dividend stocks. If the markets crash I’ll take out of NUSI & put into VTI. Then once we are at ATHs again I’ll go back to NUSI.
I have Vti because it has the total stock market!
what about VTSAX ?
VTSAX is the mutual fund version of VTI. Exact same assets but ETF’s trade differently than mutual funds. I’ve got a Number of videos on the topic on my channel if you want to take a closer look. THANK YOU for watching!
@@AverageJoeInvestor
Also, if you buy VTSAX from a Fidelity account, you will have a $75 fee iirc. So the vanguard etf is the way to go IMO if buying cross platform like that.
100% of my portfolio is in VTI at the moment
@Jack Tapley yes they are
GREAT JOB SHAWN! Keep up the good work! =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
I am thinking on stopping wasting time on single stocks and buy vti only.
@@BadWeatherfreak Total Market and S&P usually outperforms the vast majority of investors, so you're making a fairly wise (albeit maybe not as lucrative) decision. Just don't expect fast growth unless you are investing decently large amounts consistently.
@@RawDogTV Huh?
Great video Average Joe on Money, I have both VOO and VTI...
VERY NICE! THANK YOU for watching and for leaving your $0.02 in the comments! 👍🏻😎
Like that tshirt too! 👍
THANK YOU for watching! I appreciate it!
Couple of things Joe. 1, How have I not found your channel yet?! Just subbed. and 2, I love and am involved in both VTI and VOO. Along with VNQ and VYMI
Welcome aboard! THANK YOU for weighing in!
What while VUG?
About
You remind me so much of Daniel Craig. Thanks for the video!
HAHA, well THANK YOU? LOL! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Do you guys think it will dip anytime soon?
Hard to say... There are so many variables with COVID and the changing of presidents and already at market highs...
VOO is a staple in my portfolio
It is a staple in way Roth IRA as well!
Same
Love your videos very informative
Glad you like them Nelson! THANK YOU for watching!
I have both. Thank you
THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hey Joe! I'm very eager to buy either VTI or VOO but am curious as to whether the brokerage you buy it through matters? I'm very new to investing so I hope this isn't a stupid question.
GREAT QUESTION OTTO! Both VTI and VOO are ETF's which generally means there is no issue with buying them with Vanguard, Schwab, Fidelity, etc. Indexed mutual funds can be difficult to purchase IF you don't have an account with that specific investment company (Fidelity charges $75 to buy Vanguard index funds but $0 for their ETF's). THANK YOU for watching Otto and for leaving your $0.02 in the comments! 😎👍🏻