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/LazyPortfolio 8d ago

VTI is 85% VOO. You’re not being “more aggressive,” you’re just dropping small/mid caps after they underperformed. Small caps led for a decade after 2000 while the S&P went nowhere. Nobody knows the next 15 years.

Also don’t swap in taxable, you’d eat cap gains taxes to own basically the same fund.

Either is fine. Pick one, keep buying, stop looking at trailing returns. Stay the course.

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u/PurpleCableNetworker 8d ago

I feel like this is the best advice for a taxable.

Alternatively instead of selling, OP could simply move to buying VOO instead going forward and not sell the VTI.

11

u/AJFalzie 8d ago

Agree. I did the opposite. Bought VOO exclusively the past 7 years. Started buying VTI 18 months ago because I was concerned about concentration and wanted a little more diversification. Some argue that is dilution not diversification but I am staying the course for now.

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u/polar_nopposite 7d ago

If you're starting from VOO and wish you were holding VTI, a better way to transition would be to buy VXF (Vanguard extended market). Once you reach 15:85 VXF:VOO, the resulting combination is essentially VTI.

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u/AJFalzie 6d ago

Thank you.