Should I Switch From VOO to VT For Better Long-Term Investment Returns?

"Considering the thousands of options flooding the market, one has to carefully pick investments based on one's goals and investment horizon. What combo works for you may not work for someone else. A Redditor recently asked whether they should switch their funds from Vanguard S&P 500 ETF ( NYSEARCA:VOO) to Vanguard Total World Stock ETF (VT) for higher long-term returns. While both Vanguard ETFs are great investment options, one has to carefully choose a fund based on their current financial position."

"If you want to make the most of your investments, diversification is the key. You can diversify your portfolio by holding your investments in VOO and allocating the new investments in VT. VOO holds about 500 stocks, while VT holds close to 10,000 stocks, offering ultimate diversification. VOO offers a strong foundation by investing in the biggest U.S. companies. It is inclined towards the technology sector with over 30% allocation."

"The top 10 holdings are the biggest tech giants driving the market today. On the other hand, VT invests in global companies and allows you to own stocks in companies across the Middle East, the Pacific, Europe, and emerging markets. About 60% of the fund is invested in North America, and the remainder is invested across 30+ countries. Operating expenses are a part of every ETF investment you make, and smart investors must compare the expense ratio before putting their money in a fund."

Beginner investors face overwhelming choices and should select investments that match personal goals and investment horizon. Choosing between Vanguard S&P 500 ETF (VOO) and Vanguard Total World Stock ETF (VT) requires weighing U.S.-centric concentration against broader global diversification. Maintaining existing VOO holdings while directing new contributions to VT can add global exposure without selling current positions. VOO holds about 500 stocks and is heavily weighted toward technology, with over 30% allocation and top 10 holdings dominated by major tech giants. VT holds close to 10,000 stocks across more than 30 countries, with roughly 60% in North America. Compare expense ratios before investing; VOO’s expense ratio is 0.03%.

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