The Vanguard Total Stock Market Index Fund ETF Shares (VTI) and the Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) are both among the Top 100 ETFs. VTI is a Vanguard Large Blend fund and VOE is a Vanguard Mid-Cap Value fund. So, what’s the difference between VTI and VOE? And which fund is better?
The expense ratio of VTI is 0.04 percentage points lower than VOE’s (0.03% vs. 0.07%). VTI also has a higher exposure to the technology sector and a lower standard deviation. Overall, VTI has provided higher returns than VOE over the past ten years.
In this article, we’ll compare VTI vs. VOE. We’ll look at portfolio growth and fund composition, as well as at their risk metrics and holdings. Moreover, I’ll also discuss VTI’s and VOE’s annual returns, performance, and industry exposure and examine how these affect their overall returns.
Summary
| VTI | VOE | |
| Name | Vanguard Total Stock Market Index Fund ETF Shares | Vanguard Mid-Cap Value Index Fund ETF Shares |
| Category | Large Blend | Mid-Cap Value |
| Issuer | Vanguard | Vanguard |
| AUM | 1.26T | 26.78B |
| Avg. Return | 14.70% | 12.52% |
| Div. Yield | 1.26% | 1.87% |
| Expense Ratio | 0.03% | 0.07% |
The Vanguard Total Stock Market Index Fund ETF Shares (VTI) is a Large Blend fund that is issued by Vanguard. It currently has 1.26T total assets under management and has yielded an average annual return of 14.70% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.03%.
The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) is a Mid-Cap Value fund that is issued by Vanguard. It currently has 26.78B total assets under management and has yielded an average annual return of 12.52% over the past 10 years. The fund has a dividend yield of 1.87% with an expense ratio of 0.07%.
VTI’s dividend yield is 0.61% lower than that of VOE (1.26% vs. 1.87%). Also, VTI yielded on average 2.17% more per year over the past decade (14.70% vs. 12.52%). The expense ratio of VTI is 0.04 percentage points lower than VOE’s (0.03% vs. 0.07%).
Fund Composition
Industry Exposure
| VTI | VOE | |
| Technology | 24.1% | 9.85% |
| Industrials | 9.39% | 9.4% |
| Energy | 2.77% | 5.69% |
| Communication Services | 10.4% | 5.27% |
| Utilities | 2.29% | 10.93% |
| Healthcare | 13.64% | 7.04% |
| Consumer Defensive | 5.77% | 4.85% |
| Real Estate | 3.59% | 11.48% |
| Financial Services | 13.77% | 18.26% |
| Consumer Cyclical | 11.83% | 11.8% |
| Basic Materials | 2.44% | 5.44% |
The Vanguard Total Stock Market Index Fund ETF Shares (VTI) has the most exposure to the Technology sector at 24.1%. This is followed by Financial Services and Healthcare at 13.77% and 13.64% respectively. Basic Materials (2.44%), Energy (2.77%), and Real Estate (3.59%) only make up 8.80% of the fund’s total assets.
VTI’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Communication Services, Consumer Cyclical, and Healthcare stocks at 5.77%, 9.39%, 10.4%, 11.83%, and 13.64%.
The Vanguard Mid-Cap Value Index Fund ETF Shares (VOE) has the most exposure to the Financial Services sector at 18.26%. This is followed by Consumer Cyclical and Real Estate at 11.8% and 11.48% respectively. Communication Services (5.27%), Basic Materials (5.44%), and Energy (5.69%) only make up 16.40% of the fund’s total assets.
VOE’s mid-section with moderate exposure is comprised of Healthcare, Industrials, Technology, Utilities, and Real Estate stocks at 7.04%, 9.4%, 9.85%, 10.93%, and 11.48%.
VTI is 14.25% more exposed to the Technology sector than VOE (24.1% vs 9.85%). VTI’s exposure to Financial Services and Healthcare stocks is 4.49% lower and 6.60% higher respectively (13.77% vs. 18.26% and 13.64% vs. 7.04%). In total, Basic Materials, Energy, and Real Estate also make up 13.81% less of the fund’s holdings compared to VOE (8.80% vs. 22.61%).
Holdings
| VTI Holdings | Weight |
| Apple Inc | 4.9% |
| Microsoft Corp | 4.6% |
| Amazon.com Inc | 3.33% |
| Facebook Inc Class A | 1.88% |
| Alphabet Inc Class A | 1.66% |
| Alphabet Inc Class C | 1.56% |
| Tesla Inc | 1.18% |
| Berkshire Hathaway Inc Class B | 1.09% |
| NVIDIA Corp | 1.07% |
| JPMorgan Chase & Co | 1.06% |
VTI’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 4.9%, 4.6%, 3.33%, 1.88%, and 1.66%.
Alphabet Inc Class C (1.56%), Tesla Inc (1.18%), and Berkshire Hathaway Inc Class B (1.09%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VTI’s holdings at 1.07% and 1.06%.
| VOE Holdings | Weight |
| Carrier Global Corp Ordinary Shares | 1.28% |
| International Flavors & Fragrances Inc | 1.13% |
| Motorola Solutions Inc | 1.12% |
| Discover Financial Services | 1.09% |
| Welltower Inc | 1.05% |
| Corteva Inc | 0.99% |
| Valero Energy Corp | 0.97% |
| Corning Inc | 0.95% |
| Willis Towers Watson PLC | 0.9% |
| D.R. Horton Inc | 0.89% |
VOE’s Top Holdings are Carrier Global Corp Ordinary Shares, International Flavors & Fragrances Inc, Motorola Solutions Inc, Discover Financial Services, and Welltower Inc at 1.28%, 1.13%, 1.12%, 1.09%, and 1.05%.
Corteva Inc (0.99%), Valero Energy Corp (0.97%), and Corning Inc (0.95%) have a slightly smaller but still significant weight. Willis Towers Watson PLC and D.R. Horton Inc are also represented in the VOE’s holdings at 0.9% and 0.89%.
Performance
Annual Returns
| Year | VTI | VOE |
| 2020 | 20.95% | 2.5% |
| 2019 | 30.8% | 27.98% |
| 2018 | -5.13% | -12.41% |
| 2017 | 21.16% | 17.05% |
| 2016 | 12.68% | 15.26% |
| 2015 | 0.4% | -1.8% |
| 2014 | 12.56% | 13.98% |
| 2013 | 33.51% | 37.65% |
| 2012 | 16.41% | 16.04% |
| 2011 | 1.06% | -0.32% |
| 2010 | 17.26% | 21.83% |
VTI had its best year in 2013 with an annual return of 33.51%. VTI’s worst year over the past decade yielded -5.13% and occurred in 2018. In most years the Vanguard Total Stock Market Index Fund ETF Shares provided moderate returns such as in 2016, 2012, and 2010 where annual returns amounted to 12.68%, 16.41%, and 17.26% respectively.
The year 2013 was the strongest year for VOE, returning 37.65% on an annual basis. The poorest year for VOE in the last ten years was 2018, with a yield of -12.41%. Most years the Vanguard Mid-Cap Value Index Fund ETF Shares has given investors modest returns, such as in 2014, 2016, and 2012, when gains were 13.98%, 15.26%, and 16.04% respectively.
Portfolio Growth
| Fund | Initial Balance | Final Balance | CAGR |
| VTI | $10,000 | $42,648 | 14.70% |
| VOE | $10,000 | $33,655 | 12.52% |
A $10,000 investment in VTI would have resulted in a final balance of $42,648. This is a profit of $32,648 over 11 years and amounts to a compound annual growth rate (CAGR) of 14.70%.
With a $10,000 investment in VOE, the end total would have been $33,655. This equates to a $23,655 profit over 11 years and a compound annual growth rate (CAGR) of 12.52%.
VTI’s CAGR is 2.17 percentage points higher than that of VOE and as a result, would have yielded $8,993 more on a $10,000 investment. Thus, VTI outperformed VOE by 2.17% annually.
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