Motley Fool Favors Vanguard VTI Over VOO on 2026 Small-Cap Growth, With 3,494 Holdings
Updated
Updated · The Motley Fool · May 19
Motley Fool Favors Vanguard VTI Over VOO on 2026 Small-Cap Growth, With 3,494 Holdings
3 articles · Updated · The Motley Fool · May 19
Vanguard Total Stock Market ETF was picked over Vanguard S&P 500 ETF because expected 2026 small-cap earnings growth could finally outpace the S&P 500 and lift broader-market returns.
VTI holds 3,494 stocks versus VOO's 505, giving it exposure to mid- and small-cap companies that could benefit if earnings expansion broadens beyond mega-cap tech.
That broader reach has hurt recently: VTI returned 15.3% annualized over 10 years, slightly behind VOO's 15.8%, as smaller stocks lagged large caps.
Valuation adds to the case, with the S&P 500 trading around 27 times earnings versus about 18 for small caps, suggesting more room for catch-up if forecasts hold.
The two funds still overlap by about 88% and charge the same 0.03% expense ratio, so the call hinges mainly on whether small caps can sustain a relative rebound.
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