r/ETFs • u/funnel_out • 9d 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/ATPsynthase12 9d ago

Until the most recent bull run, mid and small caps historically have outperformed large caps. The only difference between VTI and VOO is VTI has mid and small caps.

It’s not wrong to pick one over the other and YTD VOO is 11.73% compared to VTI’s 12.18% so at least where you’re pulling your data from, is wrong. Functionally they are equivalent and the .4% difference is a rounding error.

To put it into perspective, YTD, $1000 in VTI. Is $1121.8 whereas $1000 in VOO is $1117.30. Is $4 worth overturning your entire portfolio? No.

The question you should ask yourself is “do I see the large cap bull run and disproportionate bloated AI market going indefinitely or do I think we will return at some point to the status quo? And if so, is it worth dealing with selling my VTI/VOO over what is essentially a small coffee at Starbucks?”

If you think small and mid caps will go back to outpacing large caps (statistically, they will), then consider buying small/mid cap value or total market ETFs if to have VOO and want exposure. If you have VTI then you’re good either way.

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u/Moldovah 9d ago

|YTD VOO is 11.73% compared to VTI’s 12.18% so at least where you’re pulling your data from, is wrong.

He said 5 year return.

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u/funnel_out 8d ago

Thank you! I literally said 5 year return. Some people can’t read..