The Vanguard S&P 500 ETF (VOO) Beat the Vanguard Morningstar Total Stock Market ETF (VTI) for 4 Straight Years. Here's Why That's About to Change.

The Vanguard S&P 500 ETF (VOO) has outperformed the Vanguard Total Stock Market ETF (VTI) for four straight years, but that trend is about to change. Both ETFs are popular investment vehicles for gaining exposure to the U.S. stock market, with VOO mirroring the S&P 500 and VTI covering the entire market. While the S&P 500 makes up around 80% of the market, VOO's heavier weighting in large-cap stocks like Nvidia has driven its recent gains.

However, VTI's exposure to smaller and mid-cap stocks may provide more value for investors seeking a different tilt in their portfolio. VTI's flexibility also allows it to add new holdings sooner than VOO, potentially giving it an edge in capturing growth opportunities from emerging companies like SpaceX, Anthropic, and OpenAI. Despite VOO's impressive track record, the Total Stock Market ETF's broader scope and adaptability make it a compelling choice for investors looking to build a well-rounded, low-cost market exposure.