Summary
- Investing in a broader market ETF gives you the chance to own all the names, even the next big winners.
- Both, VTI and VOO provide top-heavy exposure via a similar investment style and industry allocation.
- VTI’s exposure to small and mid-caps via its 3,600 holdings fails to deliver better diversification.
- I recommend VOO over VTI due to its concentrated portfolio, superior performance, lower volatility, and better long-term growth potential.
gorodenkoff
Shall I invest my hard-earned cash in ETFs or individual stocks?
That’s a question, very likely, each of us asked ourselves a million times. In fact, there is no right or wrong answer, but ultimately, the decision comes down to personal preferences, investing experience, and time
Analyst’s Disclosure: I/we have a beneficial long position in the shares of VOO, MSFT, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.