VTI Offers Broader Market Exposure Than VTV

Vanguard Total Stock Market ETF (NYSEMKT:VTI) covers the entire U.S. stock market, while Vanguard Value ETF (NYSEMKT:VTV) focuses on large-cap value stocks, offering higher yield and sector tilts.

Vanguard Value ETF tracks the CRSP US Large Cap Value Index, targeting established value stocks, while Vanguard Total Stock Market ETF seeks to capture the performance of the full U.S. stock market, spanning large-, mid-, and small-cap companies. Here’s how these two funds compare on cost, returns, risk, and portfolio composition.

Snapshot (cost & size)

Beta measures price volatility relative to the S&P 500; figures use five-year weekly returns.

VTI is slightly more affordable with a 0.03% expense ratio compared to 0.04% for VTV, but VTV offers a higher dividend yield, which may appeal to income-focused investors.

Performance & risk comparison

What's inside

Vanguard Total Stock Market ETF (AMEX:VTI) provides exposure to the full spectrum of U.S. equities, holding 3,529 stocks across all market caps and styles. Its largest sector allocations are technology (38%), consumer discretionary (14%), and industrials (12%). The top holdings are NVIDIA (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL). With a 24-year track record, VTI remains a core option for broad market exposure.

By contrast, VTV leans toward financials (23%), industrials (16%), and health care (14%), with top positions in JPMorgan Chase (NYSE:JPM), Berkshire Hathaway (NYSE:BRK.B), and Exxon Mobil (NYSE:XOM). Its portfolio consists of 314 established value names, emphasizing large-cap companies with value characteristics.

For more guidance on ETF investing, check out the full guide at this link.

Foolish take

Investing in ETFs can be a great way for investors to gain instant diversification while avoiding needing the time and knowledge to be a stock picker. Using only VTI and VTV as an example, owning both gives investors access to hundreds of companies in all sectors and market sizes.

Before making any investment in an ETF, knowing the expense ratio is important. While these particular Vanguard ETFs have some of the lowest expense ratios around, that's not always the case with other ETFs. Taking the time to research those fees could save lots of money over the long run.

It's also important to know the weighting of the largest positions. For example, Berkshire Hathaway is the second largest position in VTV (representing 3.4% of the fund) and the 10th largest position in VTI (1.4% of the fund). Therefore, owning both of these ETFs gives investors more exposure to Berkshire than they might initially realize.

Another factor that could be important to investors is the dividend yield of an ETF. If regular income is part of what one is looking for, knowing the yield of an ETF is important. In the case of VTV, investors may be interested in its larger dividend yield when comparing it to VTI.

Glossary

ETF (Exchange-Traded Fund): An investment fund traded on stock exchanges, holding a basket of assets like stocks or bonds.
Expense ratio: The annual fee, as a percentage of assets, that a fund charges to cover operating costs.
Dividend yield: Annual dividends paid by a fund or stock, expressed as a percentage of its current price.
Beta: A measure of an investment's volatility compared to the overall market; below 1 means less volatile.
AUM (Assets Under Management): The total market value of assets a fund manages on behalf of investors.
Max drawdown: The largest percentage drop from a fund's peak value to its lowest point over a set period.
Large-cap: Companies with a large market capitalization, typically over $10 billion.
Mid-cap: Companies with a medium market capitalization, generally between $2 billion and $10 billion.
Small-cap: Companies with a relatively small market capitalization, usually between $300 million and $2 billion.
Value stocks: Stocks considered undervalued relative to fundamentals, often with lower prices and higher dividends.
Defensive sector: Industries less sensitive to economic cycles, like healthcare or utilities, offering stability during downturns.
Index (as in CRSP US Large Cap Value Index): A benchmark measuring the performance of a specific group of stocks or assets.

JPMorgan Chase is an advertising partner of Motley Fool Money. Jeff Santoro has positions in Apple, Berkshire Hathaway, Microsoft, Nvidia, and Vanguard Index Funds - Vanguard Value ETF. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, JPMorgan Chase, Microsoft, Nvidia, Vanguard Index Funds - Vanguard Value ETF, and Vanguard Total Stock Market ETF. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.