The Vanguard Total Stock Market Index Fund ETF Shares (VTI) and the Vanguard Value Index Fund ETF Shares (VTV) are both among the Top 100 ETFs. VTI is a Vanguard Large Blend fund and VTV is a Vanguard Large Value fund. So, what’s the difference between VTI and VTV? And which fund is better?
The expense ratio of VTI is 0.01 percentage points lower than VTV’s (0.03% vs. 0.04%). VTI also has a higher exposure to the technology sector and a higher standard deviation. Overall, VTI has provided higher returns than VTV over the past ten years.
In this article, we’ll compare VTI vs. VTV. We’ll look at industry exposure and fund composition, as well as at their portfolio growth and risk metrics. Moreover, I’ll also discuss VTI’s and VTV’s performance, annual returns, and holdings and examine how these affect their overall returns.
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Summary
| VTI | VTV | |
| Name | Vanguard Total Stock Market Index Fund ETF Shares | Vanguard Value Index Fund ETF Shares |
| Category | Large Blend | Large Value |
| Issuer | Vanguard | Vanguard |
| AUM | 1.26T | 125.77B |
| Avg. Return | 14.70% | 12.07% |
| Div. Yield | 1.26% | 2.15% |
| Expense Ratio | 0.03% | 0.04% |
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 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%.
VTI’s dividend yield is 0.89% lower than that of VTV (1.26% vs. 2.15%). Also, VTI yielded on average 2.62% more per year over the past decade (14.70% vs. 12.07%). The expense ratio of VTI is 0.01 percentage points lower than VTV’s (0.03% vs. 0.04%).
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Fund Composition
Industry Exposure
| VTI | VTV | |
| Technology | 24.1% | 7.86% |
| Industrials | 9.39% | 12.61% |
| Energy | 2.77% | 5.59% |
| Communication Services | 10.4% | 5.49% |
| Utilities | 2.29% | 5.37% |
| Healthcare | 13.64% | 19.84% |
| Consumer Defensive | 5.77% | 10.72% |
| Real Estate | 3.59% | 3.01% |
| Financial Services | 13.77% | 22.81% |
| Consumer Cyclical | 11.83% | 3.79% |
| Basic Materials | 2.44% | 2.91% |
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 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%.
VTI is 16.24% more exposed to the Technology sector than VTV (24.1% vs 7.86%). VTI’s exposure to Financial Services and Healthcare stocks is 9.04% lower and 6.20% lower respectively (13.77% vs. 22.81% and 13.64% vs. 19.84%). In total, Basic Materials, Energy, and Real Estate also make up 2.71% less of the fund’s holdings compared to VTV (8.80% vs. 11.51%).
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%.
| 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
| Year | VTI | VTV |
| 2020 | 20.95% | 2.23% |
| 2019 | 30.8% | 25.85% |
| 2018 | -5.13% | -5.39% |
| 2017 | 21.16% | 17.12% |
| 2016 | 12.68% | 16.88% |
| 2015 | 0.4% | -0.89% |
| 2014 | 12.56% | 13.19% |
| 2013 | 33.51% | 33.03% |
| 2012 | 16.41% | 15.19% |
| 2011 | 1.06% | 1.16% |
| 2010 | 17.26% | 14.45% |
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 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
| Fund | Initial Balance | Final Balance | CAGR |
| VTI | $10,000 | $42,648 | 14.70% |
| VTV | $10,000 | $33,163 | 12.07% |
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 VTV, the end total would have been $33,163. This equates to a $23,163 profit over 11 years and a compound annual growth rate (CAGR) of 12.07%.
VTI’s CAGR is 2.62 percentage points higher than that of VTV and as a result, would have yielded $9,485 more on a $10,000 investment. Thus, VTI outperformed VTV by 2.62% annually.
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