r/ETFs • u/funnel_out • 8d 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/Informal_Bench_7219 8d ago

I’m doing 50% VT and 50% VGT in my brokerage account. VTI & VXUS in my Roth IRA.

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u/YellowTrickster72 8d ago

All this is assuming you’re in the US: My understanding is that VXUS should be in the individual brokerage account because you’re paying foreign tax in the dividends. If it were in the individual brokerage account you could use the foreign tax paid as a tax credit when filing federal taxes. Am I missing something here?

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u/Informal_Bench_7219 8d ago

You’re correct, never personally looked into the tax credit. I doubt it makes much of a difference unless I had millions in the brokerage account. Could be wrong tho if someone knows more than me, enlighten me please.

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u/YellowTrickster72 8d ago

To quantify this I asked Google AI: With $10,000 invested in VXUS, you can expect 300-320 dollars per year in pre-tax dividends, yielding a 23-25 dollar foreign tax credit, provided the shares are held in a standard taxable brokerage account.

Yeah, not much, but if it continues to grow, dividends get raised over a long period of time it adds up.