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VTI vs. VV: What’s The Difference?

The Vanguard Total Stock Market Index Fund ETF Shares (VTI) and the Vanguard Large-Cap Index Fund ETF Shares (VV) are both among the Top 100 ETFs. VTI is a Vanguard Large Blend fund and VV is a Vanguard Large Blend fund. So, what’s the difference between VTI and VV? And which fund is better?

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

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

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Summary

VTIVV
NameVanguard Total Stock Market Index Fund ETF SharesVanguard Large-Cap Index Fund ETF Shares
CategoryLarge BlendLarge Blend
IssuerVanguardVanguard
AUM1.26T37.65B
Avg. Return14.70%14.75%
Div. Yield1.26%1.26%
Expense Ratio0.03%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 Large-Cap Index Fund ETF Shares (VV) is a Large Blend fund that is issued by Vanguard. It currently has 37.65B total assets under management and has yielded an average annual return of 14.75% over the past 10 years. The fund has a dividend yield of 1.26% with an expense ratio of 0.04%.

VTI’s dividend yield is 0.00% lower than that of VV (1.26% vs. 1.26%). Also, VTI yielded on average 0.05% less per year over the past decade (14.70% vs. 14.75%). The expense ratio of VTI is 0.01 percentage points lower than VV’s (0.03% vs. 0.04%).

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Fund Composition

Industry Exposure

VTI vs. VV - Industry Exposure

VTIVV
Technology24.1%25.38%
Industrials9.39%8.39%
Energy2.77%2.62%
Communication Services10.4%11.68%
Utilities2.29%2.35%
Healthcare13.64%13.22%
Consumer Defensive5.77%6.06%
Real Estate3.59%2.7%
Financial Services13.77%13.82%
Consumer Cyclical11.83%11.65%
Basic Materials2.44%2.13%

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 Large-Cap Index Fund ETF Shares (VV) has the most exposure to the Technology sector at 25.38%. This is followed by Financial Services and Healthcare at 13.82% and 13.22% respectively. Utilities (2.35%), Energy (2.62%), and Real Estate (2.7%) only make up 7.67% of the fund’s total assets.

VV’s mid-section with moderate exposure is comprised of Consumer Defensive, Industrials, Consumer Cyclical, Communication Services, and Healthcare stocks at 6.06%, 8.39%, 11.65%, 11.68%, and 13.22%.

VTI is 1.28% less exposed to the Technology sector than VV (24.1% vs 25.38%). VTI’s exposure to Financial Services and Healthcare stocks is 0.05% lower and 0.42% higher respectively (13.77% vs. 13.82% and 13.64% vs. 13.22%). In total, Basic Materials, Energy, and Real Estate also make up 1.35% more of the fund’s holdings compared to VV (8.80% vs. 7.45%).

Holdings

VTI - Holdings

VTI HoldingsWeight
Apple Inc4.9%
Microsoft Corp4.6%
Amazon.com Inc3.33%
Facebook Inc Class A1.88%
Alphabet Inc Class A1.66%
Alphabet Inc Class C1.56%
Tesla Inc1.18%
Berkshire Hathaway Inc Class B1.09%
NVIDIA Corp1.07%
JPMorgan Chase & Co1.06%

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%.

VV - Holdings

VV HoldingsWeight
Apple Inc5.7%
Microsoft Corp5.35%
Amazon.com Inc3.87%
Facebook Inc Class A2.19%
Alphabet Inc Class A1.93%
Alphabet Inc Class C1.81%
Tesla Inc1.37%
Berkshire Hathaway Inc Class B1.3%
NVIDIA Corp1.24%
JPMorgan Chase & Co1.24%

VV’s Top Holdings are Apple Inc, Microsoft Corp, Amazon.com Inc, Facebook Inc Class A, and Alphabet Inc Class A at 5.7%, 5.35%, 3.87%, 2.19%, and 1.93%.

Alphabet Inc Class C (1.81%), Tesla Inc (1.37%), and Berkshire Hathaway Inc Class B (1.3%) have a slightly smaller but still significant weight. NVIDIA Corp and JPMorgan Chase & Co are also represented in the VV’s holdings at 1.24% and 1.24%.

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Performance

Annual Returns

VTI vs. VV - Annual Returns

YearVTIVV
202020.95%20.99%
201930.8%31.39%
2018-5.13%-4.44%
201721.16%22.03%
201612.68%11.65%
20150.4%1.07%
201412.56%13.39%
201333.51%32.65%
201216.41%16.09%
20111.06%1.58%
201017.26%15.81%

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 VV, returning 32.65% on an annual basis. The poorest year for VV in the last ten years was 2018, with a yield of -4.44%. Most years the Vanguard Large-Cap Index Fund ETF Shares has given investors modest returns, such as in 2014, 2010, and 2012, when gains were 13.39%, 15.81%, and 16.09% respectively.

Portfolio Growth

VTI vs. VV - Portfolio Growth

FundInitial BalanceFinal BalanceCAGR
VTI$10,000$42,64814.70%
VV$10,000$42,97014.75%

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 VV, the end total would have been $42,970. This equates to a $32,970 profit over 11 years and a compound annual growth rate (CAGR) of 14.75%.

VTI’s CAGR is 0.05 percentage points lower than that of VV and as a result, would have yielded $322 less on a $10,000 investment. Thus, VTI performed worse than VV by 0.05% annually.


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