NEW YORK, July 20, 2026, 11:08 EDT
The Vanguard Total Stock Market ETF NYSEARCA:VTI includes 3,025 additional stocks relative to its large-cap peer. However, during three significant periods of market stress, the Vanguard S&P 500 ETF NYSEARCA:VOO proved more resilient.
VTI underperformed in the fourth quarter of 2018, as well as in the early months of 2020 and during all of 2022. Its underperformance varied between 0.73 and 1.35 percentage points.
U.S. markets were trading at 11:08 EDT Monday. The most recent trades at 10:53 EDT showed VOO at $684.22, rising $1.05. VTI was up $0.42 at $367.43.
Recent analysis showed VTI might have a minor advantage should the technology sector weaken. Trefis referred to VTI as being more affordable. Another article highlighted VOO as suitable for long-term cost averaging. According to Vanguard’s statistics, the decision is less about defense than it may seem.
The table below is based on fund data as of June 30 and past NAV performance. When the return gap is negative, VTI underperformed.
| Measure | VOO | VTI | VTI minus VOO |
|---|---|---|---|
| Number of holdings | 506 | 3,531 | +3,025 |
| Expense ratio | 0.03% | 0.03% | 0.00 pp |
| Top 10 as % of assets | 37.9% | 33.4% | -4.5 pp |
| Price/earnings ratio | 27.5x | 27.0x | -0.5x |
| Three-year volatility | 13.06% | 13.45% | +0.39 pp |
| NAV return, Q4 2018 | -13.51% | -14.24% | -0.73 pp |
| NAV return, Q1 2020 | -19.63% | -20.89% | -1.26 pp |
| NAV return, 2022 | -18.15% | -19.50% | -1.35 pp |
VTI does provide genuine diversification, but this breadth is limited in terms of allocation. The leading ten holdings make up around a third of total assets. An up-to-date screen from ETF Research Center indicates the fund has an 87% overlap by weight.
A straightforward inverse-P/E calculation results in a 3.70% earnings yield for VTI, while VOO posts 3.64%. This reflects a gap of roughly seven basis points.
The yield on the 10-year Treasury stood at approximately 4.58% on Monday morning, putting both funds’ earnings yields about 0.9 percentage point below that benchmark. This is not intended as a return forecast.
The overall fund experienced marginally higher volatility, with a three-year standard deviation of 13.45%, compared to VOO’s 13.06%. Vanguard cautions that the prices of mid- and small-cap ETFs are generally subject to greater fluctuations.
Concentration risk remains a factor. The PHLX Semiconductor Index entered bear market territory on Monday. Ajay Rajadhyaksha and his Barclays LON:BARC team highlighted fresh concerns over AI investment. “The biggest sentiment driver by far seems to be renewed concerns about the AI capex trade,” it said. MarketWatch
VTI, however, has outperformed in 2026. Its NAV return reached 11.07% through June, compared to VOO’s 10.19%.
VOO maintained its advantage over extended periods, outperforming by 1.12 points per year across five years and by 0.43 point over ten years. The data portrays VTI as an option with broader market exposure, rather than as a demonstrated tool for risk protection.
Risks: VTI may widen its 2026 advantage if the market broadens. If megacap stocks fall sharply, VTI’s lower concentration might prove beneficial. Previous selloffs do not predict future declines.
