"In that vein, two popular choices among patient investors are the Vanguard S&P 500 ETF ( NYSEARCA:VOO) and the Vanguard Total Stock Market Index Fund ETF ( NYSEARCA:VTI). For minimal management fees and reliable dividends, you won't do much better than these two Vanguard funds. I'd call VOO and VTI smart-money picks, but which one is smarter for folks seeking long-term returns?"
"I believe it's smart to own at least one low-cost index fund, and the Vanguard S&P 500 ETF is about as low-cost as it gets. VOO's expense ratio - a percentage which expresses the operating expenses that are automatically deducted from the share price on an annualized basis - is only 0.03%. To put it another way, the Vanguard S&P 500 ETF only deducts $0.03 worth of management fees per year for every $100 you'd invest in the fund."
VOO tracks the S&P 500 and provides exposure to roughly 500 large-cap U.S. companies. VTI tracks the total U.S. stock market and provides exposure to hundreds or thousands of stocks across market caps. Both ETFs are Vanguard funds with rock-bottom expense ratios and reliable dividends. VOO's expense ratio is 0.03%, equating to $0.03 per $100 invested annually. The trade-off for investors is between VOO's slightly better historical performance and VTI's broader diversification. Both ETFs are presented as smart, low-cost choices for patient, long-term investors seeking core equity exposure.
Read at 24/7 Wall St.
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