The Vanguard S&P 500 ETF (VOO) and the iShares Core S&P Total U.S. Stock Market ETF (ITOT) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and ITOT is a iShares Large Blend fund. So, what’s the difference between VOO and ITOT? And which fund is better?
VOO and ITOT have the same expense ratio: 0.03%. VOO also has a lower exposure to the technology sector and a lower standard deviation. Overall, VOO has provided lower returns than ITOT over the past ten years.
In this article, we’ll compare VOO vs. ITOT. We’ll look at industry exposure and risk metrics, as well as at their holdings and portfolio growth. Moreover, I’ll also discuss VOO’s and ITOT’s fund composition, performance, and annual returns and examine how these affect their overall returns.
Summary
| VOO | ITOT | |
| Name | Vanguard S&P 500 ETF | iShares Core S&P Total U.S. Stock Market ETF |
| Category | Large Blend | Large Blend |
| Issuer | Vanguard | iShares |
| AUM | 753.41B | 41.97B |
| Avg. Return | 14.45% | 14.59% |
| Div. Yield | 1.34% | 1.2% |
| Expense Ratio | 0.03% | 0.03% |
The Vanguard S&P 500 ETF (VOO) is a Large Blend fund that is issued by Vanguard. It currently has 753.41B total assets under management and has yielded an average annual return of 14.45% over the past 10 years. The fund has a dividend yield of 1.34% with an expense ratio of 0.03%.
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) is a Large Blend fund that is issued by iShares. It currently has 41.97B total assets under management and has yielded an average annual return of 14.59% over the past 10 years. The fund has a dividend yield of 1.2% with an expense ratio of 0.03%.
VOO’s dividend yield is 0.14% higher than that of ITOT (1.34% vs. 1.2%). Also, VOO yielded on average 0.14% less per year over the past decade (14.45% vs. 14.59%). VOO and ITOT have the same expense ratio: 0.03%.
Fund Composition
Industry Exposure
| VOO | ITOT | |
| Technology | 24.24% | 24.49% |
| Industrials | 8.86% | 9.21% |
| Energy | 2.84% | 2.51% |
| Communication Services | 11.14% | 10.54% |
| Utilities | 2.43% | 2.35% |
| Healthcare | 13.1% | 13.59% |
| Consumer Defensive | 6.32% | 5.79% |
| Real Estate | 2.58% | 3.67% |
| Financial Services | 14.2% | 13.69% |
| Consumer Cyclical | 12.01% | 11.69% |
| Basic Materials | 2.27% | 2.47% |
The Vanguard S&P 500 ETF (VOO) has the most exposure to the Technology sector at 24.24%. This is followed by Financial Services and Healthcare at 14.2% and 13.1% respectively. Utilities (2.43%), Real Estate (2.58%), and Energy (2.84%) only make up 7.85% of the fund’s total assets.
VOO’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 6.32%, 8.86%, 11.14%, 12.01%, and 13.1%.
The iShares Core S&P Total U.S. Stock Market ETF (ITOT) has the most exposure to the Technology sector at 24.49%. This is followed by Financial Services and Healthcare at 13.69% and 13.59% respectively. Basic Materials (2.47%), Energy (2.51%), and Real Estate (3.67%) only make up 8.65% of the fund’s total assets.
ITOT’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.79%, 9.21%, 10.54%, 11.69%, and 13.59%.
VOO is 0.25% less exposed to the Technology sector than ITOT (24.24% vs 24.49%). VOO’s exposure to Financial Services and Healthcare stocks is 0.51% higher and 0.49% lower respectively (14.2% vs. 13.69% and 13.1% vs. 13.59%). In total, Utilities, Real Estate, and Energy also make up 0.68% less of the fund’s holdings compared to ITOT (7.85% vs. 8.53%).
Holdings
| VOO Holdings | Weight |
| Apple Inc | 5.92% |
| Microsoft Corp | 5.62% |
| Amazon.com Inc | 4.06% |
| Facebook Inc Class A | 2.29% |
| Alphabet Inc Class A | 2.02% |
| Alphabet Inc Class C | 1.97% |
| Tesla Inc | 1.44% |
| Berkshire Hathaway Inc Class B | 1.44% |
| NVIDIA Corp | 1.37% |
| JPMorgan Chase & Co | 1.3% |
VOO’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.92%, 5.62%, 4.06%, 2.29%, and 2.02%.
Alphabet Inc Class C (1.97%), Tesla Inc (1.44%), and Berkshire Hathaway Inc Class B (1.44%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VOO’s holdings at 1.37% and 1.3%.
| ITOT Holdings | Weight |
| Apple Inc | 5.07% |
| Microsoft Corp | 4.75% |
| Amazon.com Inc | 3.16% |
| Facebook Inc Class A | 1.89% |
| Alphabet Inc Class A | 1.79% |
| Alphabet Inc Class C | 1.71% |
| Tesla Inc | 1.17% |
| Berkshire Hathaway Inc Class B | 1.17% |
| NVIDIA Corp | 1.08% |
| JPMorgan Chase & Co | 1.02% |
ITOT’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.07%, 4.75%, 3.16%, 1.89%, and 1.79%.
Alphabet Inc Class C (1.71%), Tesla Inc (1.17%), and Berkshire Hathaway Inc Class B (1.17%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the ITOT’s holdings at 1.08% and 1.02%.
Performance
Annual Returns
| Year | VOO | ITOT |
| 2020 | 18.35% | 20.75% |
| 2019 | 31.46% | 30.87% |
| 2018 | -4.42% | -5.27% |
| 2017 | 21.78% | 21.23% |
| 2016 | 11.93% | 12.59% |
| 2015 | 1.35% | 0.96% |
| 2014 | 13.63% | 13.01% |
| 2013 | 32.33% | 32.67% |
| 2012 | 15.98% | 15.98% |
| 2011 | 2.09% | 1.55% |
| 2010 | 0.0% | 16.15% |
VOO had its best year in 2013 with an annual return of 32.33%. VOO’s worst year over the past decade yielded -4.42% and occurred in 2018. In most years the Vanguard S&P 500 ETF provided moderate returns such as in 2016, 2014, and 2012 where annual returns amounted to 11.93%, 13.63%, and 15.98% respectively.
The year 2013 was the strongest year for ITOT, returning 32.67% on an annual basis. The poorest year for ITOT in the last ten years was 2018, with a yield of -5.27%. Most years the iShares Core S&P Total U.S. Stock Market ETF has given investors modest returns, such as in 2014, 2012, and 2010, when gains were 13.01%, 15.98%, and 16.15% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| VOO | $10,000 | $36,575 | 14.45% |
| ITOT | $10,000 | $36,427 | 14.59% |
A $10,000 investment in VOO would have resulted in a final balance of $36,575. This is a profit of $26,575 over 10 years and amounts to a compound annual growth rate (CAGR) of 14.45%.
With a $10,000 investment in ITOT, the end total would have been $36,427. This equates to a $26,427 profit over 10 years and a compound annual growth rate (CAGR) of 14.59%.
VOO’s CAGR is 0.14 percentage points lower than that of ITOT and as a result, would have yielded $148 more on a $10,000 investment. Thus, VOO performed worse than ITOT by 0.14% annually.
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