VOO vs. VTV: What’s The Difference?

The Vanguard S&P 500 ETF (VOO) and the Vanguard Value Index Fund ETF Shares (VTV) are both among the Top 100 ETFs. VOO is a Vanguard Large Blend fund and VTV is a Vanguard Large Value fund. So, what’s the difference between VOO and VTV? And which fund is better?

The expense ratio of VOO is 0.01 percentage points lower than VTV’s (0.03% vs. 0.04%). VOO also has a higher exposure to the technology sector and a lower standard deviation. Overall, VOO has provided higher returns than VTV over the past ten years.

In this article, we’ll compare VOO vs. VTV. We’ll look at portfolio growth and industry exposure, as well as at their risk metrics and performance. Moreover, I’ll also discuss VOO’s and VTV’s holdings, annual returns, and fund composition and examine how these affect their overall returns.

Summary

VOO VTV
Name Vanguard S&P 500 ETF Vanguard Value Index Fund ETF Shares
Category Large Blend Large Value
Issuer Vanguard Vanguard
AUM 753.41B 125.77B
Avg. Return 14.45% 12.07%
Div. Yield 1.34% 2.15%
Expense Ratio 0.03% 0.04%

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 Vanguard Value Index Fund ETF Shares (VTV) is a Large Value fund that is issued by Vanguard. It currently has 125.77B total assets under management and has yielded an average annual return of 12.07% over the past 10 years. The fund has a dividend yield of 2.15% with an expense ratio of 0.04%.

VOO’s dividend yield is 0.81% lower than that of VTV (1.34% vs. 2.15%). Also, VOO yielded on average 2.37% more per year over the past decade (14.45% vs. 12.07%). The expense ratio of VOO is 0.01 percentage points lower than VTV’s (0.03% vs. 0.04%).

Fund Composition

Industry Exposure

VOO vs. VTV - Industry Exposure

VOO VTV
Technology 24.24% 7.86%
Industrials 8.86% 12.61%
Energy 2.84% 5.59%
Communication Services 11.14% 5.49%
Utilities 2.43% 5.37%
Healthcare 13.1% 19.84%
Consumer Defensive 6.32% 10.72%
Real Estate 2.58% 3.01%
Financial Services 14.2% 22.81%
Consumer Cyclical 12.01% 3.79%
Basic Materials 2.27% 2.91%

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 Vanguard Value Index Fund ETF Shares (VTV) has the most exposure to the Financial Services sector at 22.81%. This is followed by Healthcare and Industrials at 19.84% and 12.61% respectively. Real Estate (3.01%), Consumer Cyclical (3.79%), and Utilities (5.37%) only make up 12.17% of the fund’s total assets.

VTV’s mid-section with moderate exposure is comprised of Communication Services, Energy, Technology, Consumer Defensive, and Industrials stocks at 5.49%, 5.59%, 7.86%, 10.72%, and 12.61%.

VOO is 16.38% more exposed to the Technology sector than VTV (24.24% vs 7.86%). VOO’s exposure to Financial Services and Healthcare stocks is 8.61% lower and 6.74% lower respectively (14.2% vs. 22.81% and 13.1% vs. 19.84%). In total, Utilities, Real Estate, and Energy also make up 6.12% less of the fund’s holdings compared to VTV (7.85% vs. 13.97%).

Holdings

VOO - 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%.

VTV - Holdings

VTV Holdings Weight
Berkshire Hathaway Inc Class B 2.98%
JPMorgan Chase & Co 2.82%
Johnson & Johnson 2.6%
UnitedHealth Group Inc 2.27%
Procter & Gamble Co 1.98%
Bank of America Corp 1.91%
Exxon Mobil Corp 1.6%
Comcast Corp Class A 1.57%
Intel Corp 1.36%
Verizon Communications Inc 1.32%

VTV’s Top Holdings are Berkshire Hathaway Inc Class B, JPMorgan Chase & Co, Johnson & Johnson, UnitedHealth Group Inc, and Procter & Gamble Co at 2.98%, 2.82%, 2.6%, 2.27%, and 1.98%.

Bank of America Corp (1.91%), Exxon Mobil Corp (1.6%), and Comcast Corp Class A (1.57%) have a slightly smaller but still significant weight. Intel Corp and Verizon Communications Inc are also represented in the VTV’s holdings at 1.36% and 1.32%.

Performance

Annual Returns

VOO vs. VTV - Annual Returns

Year VOO VTV
2020 18.35% 2.23%
2019 31.46% 25.85%
2018 -4.42% -5.39%
2017 21.78% 17.12%
2016 11.93% 16.88%
2015 1.35% -0.89%
2014 13.63% 13.19%
2013 32.33% 33.03%
2012 15.98% 15.19%
2011 2.09% 1.16%
2010 0.0% 14.45%

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 VTV, returning 33.03% on an annual basis. The poorest year for VTV in the last ten years was 2018, with a yield of -5.39%. Most years the Vanguard Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.19%, 14.45%, and 15.19% respectively.

Portfolio Growth

VOO vs. VTV - Portfolio Growth

Fund Initial Balance Final Balance CAGR
VOO $10,000 $36,575 14.45%
VTV $10,000 $28,976 12.07%

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 VTV, the end total would have been $28,976. This equates to a $18,976 profit over 10 years and a compound annual growth rate (CAGR) of 12.07%.

VOO’s CAGR is 2.37 percentage points higher than that of VTV and as a result, would have yielded $7,599 more on a $10,000 investment. Thus, VOO outperformed VTV by 2.37% annually.


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