What is the difference between Vanguard total stock market ETF (VTi) and VOO?

We’ll break those down here. VTI invests in every publicly traded company in the U.S., while VOO invests in the S&P 500, which consists of the largest 500 companies in the U.S. What is Vanguard Total Stock Market ETF (VTI)?

What is the difference between Voo and VTi?

As seen, VOO is exclusively exposed to large-cap stocks without a surprise. In particular, its current holdings feature an almost even split between large-cap value stocks and growth stocks (47.2% vs 52.7%, respectively). In contrast, VTI’s exposure to large-cap stocks is only about 81% (34.0% value plus 47.5% growth).

What is VTi and how does it work?

Its goal is to closely track the index’s return, which is considered a gauge of overall U.S. stock returns. VTI seeks to track the performance of the CRSP US Total Market Index, which includes Large-, mid-, and small-cap equity diversified across growth and value styles. It employs a passively managed, index-sampling strategy.

What is the QDI for Voo?

The 2020 QDI for VOO was 100 percent, while it was 96.01 percent for VTI. QDI is the percent of dividends subject to a lower tax rate than ordinary income, which makes them more tax efficient than non-qualified dividends. Non-qualified dividends are often deemed QBI (Qualified Business Income), which are 80 percent taxable at the full rate.