Author Favors Vanguard VTI for Next Bear Market as S&P 500 Gains 74% in 3 Years
Updated
Updated · The Motley Fool · Jul 17
Author Favors Vanguard VTI for Next Bear Market as S&P 500 Gains 74% in 3 Years
2 articles · Updated · The Motley Fool · Jul 17
Summary
Vanguard Total Stock Market ETF is the fund the author plans to buy more of before the next market downturn, arguing its broader diversification could hold up better than the Vanguard S&P 500 ETF.
Nearly 40% of VOO is concentrated in its top 10 holdings versus about 35% for VTI, a gap the author says leaves VTI slightly less exposed to volatility in AI-heavy tech names.
Both ETFs share the same top 10 stocks, including Apple, Microsoft, Nvidia and Alphabet, but VTI’s wider reach across the U.S. market reduces its tilt toward that group.
VOO has still outperformed during the recent tech boom, delivering roughly 311% total returns versus about 294% for VTI, showing the diversification trade-off if AI stocks keep leading.
The call comes after a three-year rally that lifted the S&P 500 74%, the Nasdaq 89% and the Dow 61%, underscoring the view that a bear market will eventually follow.