Motley Fool Backs VOO Over 3,484-Stock VTI on Large-Cap Edge
Updated
Updated · The Motley Fool · Jun 29
Motley Fool Backs VOO Over 3,484-Stock VTI on Large-Cap Edge
3 articles · Updated · The Motley Fool · Jun 29
Summary
VOO got the nod as the better one-fund choice right now, with the analyst arguing large-cap U.S. stocks should keep outperforming smaller companies in the near term.
505-stock VOO is more concentrated in mega-cap leaders: its top 10 holdings make up 39.2%, versus 34.6% for VTI, which holds 3,484 stocks across large-, mid- and small-cap companies.
Tech exposure drives both funds, but in different ways: VOO has 38.6% in information technology and all of its top 10 holdings are tech names, while VTI has about a fifth in mid- and small-caps that could lag.
Interest-rate and economic conditions underpin the preference for VOO, with the analyst saying smaller companies tend to benefit earlier in recoveries or when rates fall—neither of which appears to be the case now.