“The performance differential between the two is often minimal, because total stock market ETFs are typically market-cap weighted — even though they hold small- and mid-cap equity, large-cap holdings still make up the bulk of these funds,” according to CNBC.
Really Cheap
In addition to its expansive roster, another reason investors love VTI is its low fee. VTI’s annual fee is just 0.04% per year, or $4 on a $10,000 investment. Only a handful of ETFs in the U.S. have lower fees and VTI is cheaper than 96% of rival funds.
“The benefit of questioning the S&P 500’s ubiquity in portfolios is, ultimately, to reinforce the importance of core, long-term investing anchors at a time when there are thousands of ETFs,” reports CNBC.
The next ETF to hit $100 billion in assets is likely to be the Vanguard S&P 500 ETF (NYSEArca: VOO), which now has over $97 billion in assets. VOO is one of this year’s top asset-gathering ETFs.
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