Motley Fool Favors VTI Over VOO for Bear Markets as Tech Makes Up 40% of VOO
Updated
Updated · The Motley Fool · Jul 17
Motley Fool Favors VTI Over VOO for Bear Markets as Tech Makes Up 40% of VOO
3 articles · Updated · The Motley Fool · Jul 17
Summary
Vanguard Total Stock Market ETF may be the better bear-market holding, with Motley Fool arguing its broader diversification leaves it slightly less exposed than the S&P 500-focused VOO.
Top 10 stocks are the same in both funds, but they account for nearly 40% of VOO versus about 35% of VTI, a gap the analysis says reduces VTI's vulnerability to AI-driven tech volatility.
That diversification comes with a trade-off: VOO has outperformed during the recent tech boom, delivering roughly 311% total returns versus about 294% for VTI.
The comparison comes after a three-year rally in major indexes, with the S&P 500 up 74%, the Nasdaq 89%, and the Dow 61%, sharpening the focus on downside protection.