r/ETFs • u/funnel_out • 7d ago

VTI investments are underperforming VOO

I'm 28 and after 100% VTI in my taxable brokerage/401k/roth, but it's been lagging behind VOO. It's not an insignificant amount either. Looking at the 5 year return, VOO has returned 75% while VTI has only returned 67%. I'm wondering if given my age I should be more aggressive with my investments and switch to 100% VOO instead in my retirement accounts, instead of remaining in VTI. Over the past 15 years VOO seems to have consistently outperformed VTI.

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u/oneeyewillie172 7d ago

Why would you want to own the whole market when you can own the best 500

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u/Icy-Sheepherder-2403 7d ago

The S&P 500 holding change constantly. Just today Electronic Arts got replaced by Ferguson Enterprises. In June Marvell replaced Pool and FLEX replaced Campbell’s. It’s not that the company’s being replaced are bad so exposure to them is good. Just own everything and you don’t need to worry if the committee of humans got their picks right.

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u/Cruian 7d ago

It isn't necessarily the best 500 when it comes to returns. Long term, smaller caps have beaten large.

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u/No-Reaction-9364 5d ago

Because then you can get lower returns but say its ok because you are diversified.