What is the difference between VTI and VOO?

VTI tracks the entire US stock market (~3,700 companies, including small + mid + large caps). VOO tracks the S&P 500 (500 large-cap US companies only). VTI gives you small-cap exposure VOO does not; the two correlate ~99% because the S&P 500 is ~80% of total US market cap by weight.

Do VTI and VOO have the same expense ratio?

Yes — both Vanguard ETFs charge 0.03% TER. The choice is purely about coverage breadth (VTI broader) vs simplicity (VOO is just the S&P 500).

Which is better for long-term US equity exposure?

For most long-term holders, VTI is slightly preferable because it includes the small/mid-cap segment that has historically delivered a small premium over time. The 99% correlation means in practice the difference is marginal — pick one and hold it.

Should I hold both VTI and VOO?

No — VTI already contains every stock in VOO (S&P 500 is ~80% of VTI by weight). Holding both is redundant and just adds rebalancing complexity. Pick one.

How are VTI and VOO taxed in NZ?

Both are US-domiciled — FIF rules apply once overseas-share holdings exceed NZ$50K cost-basis. Distributions incur 15% US withholding tax under the NZ-US treaty. For PIE -tax US-equity exposure without FIF, see Smartshares USF (NZX-listed S&P 500 wrapper) or Kernel S&P 500 funds.

Updated 2026-05-02 Reviewed quarterly

VTI vs VOO: Total Market vs S&P 500

VTI

TER 0.03% · Yield 1.3% · Quarterly

VOO

TER 0.03% · Yield 1.4% · Quarterly

Both from Vanguard, both 0.03% fees. Here's what NZ investors need to know about these two giants.

Quick Answer for Kiwi Investors

They're almost identical. VTI and VOO have 99%+ correlation because VOO's 500 stocks represent ~80% of VTI. VTI adds small-cap exposure (~10%), but both deliver essentially the same returns. Pick either and stick with it.

Head-to-Head Comparison

Feature	VTI	VOO
Expense Ratio	0.03%	0.03%
Holdings	4,000+	~500
Market Coverage	100% US market	~80% US market
Small-Cap Exposure	~10%	0%
Dividend Yield	~1.3%	~1.4%
Share Price	~$290	~$540
10-Year Correlation	99%+

The Honest Truth

This comparison barely matters. VTI and VOO perform almost identically. The top 500 companies (VOO) make up about 80% of the total market (VTI).

Over 10+ years, the return difference is typically less than 0.5% total. Spend your energy on saving more and staying invested rather than agonizing over VTI vs VOO.

The Small-Cap Argument for VTI

Why VTI's Small Caps Matter

• Historically, small caps have outperformed over very long periods
• More diversification (4000 vs 500 stocks)
• Tomorrow's large caps are today's small caps
• "Own the whole haystack"

Why It May Not Matter

• Small caps only ~10% of VTI anyway
• Recent decades: large caps outperformed
• Returns are 99% correlated with VOO
• You won't notice the difference

For New Zealand Investors

Same Platforms

Both available on Hatch, Stake, Sharesies, and Interactive Brokers.

Same Tax Treatment

Both are US-domiciled Vanguard ETFs. Identical FIF rules, same 15% US withholding tax.

Share Price Consideration

VTI (~$290) is cheaper per share than VOO (~$540). If you're investing smaller amounts without fractional shares, VTI is more accessible.

Key Differences

VTI Characteristics

Total US market (4,000+ stocks)
Includes ~10% small-cap exposure
Lower share price (~$290)

VOO Characteristics

S&P 500 large-cap focus (~500 stocks)
S&P inclusion criteria act as quality screen
Slightly higher dividend yield (~1.4%)

Honestly? Flip a coin. Then invest consistently and don't look back.

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