Comparing Vanguard ETFs: VTI vs. VTV
The Vanguard Total Stock Market ETF (VTI) and the Vanguard Value ETF (VTV) both serve as strong options for investors looking to protect against risk, although they operate under different strategies.
Essentially, one offers broad exposure across the entire U.S. market, while the other emphasizes stable, high-dividend stocks. Let’s dive into how these popular ETFs stack up in ways that matter for potential investors.
Snapshots (Cost and Size)
| Metric | VTV | VTI |
|---|---|---|
| Publisher | Vanguard | Vanguard |
| Expense Ratio | 0.03% | 0.03% |
| 1 Year Return (as of June 13, 2026) | 26.89% | 24.78% |
| Dividend Yield | 1.88% | 1.01% |
| Beta (Monthly for 5 Years) | 0.72 | 1.03 |
| Assets Under Management (AUM) | $179 billion | $660.7 billion |
Both ETFs share a remarkably low expense ratio of 0.03%, placing them among the more cost-effective choices available. If you’re looking for income, VTV actually provides a better trailing dividend yield compared to VTI.
Performance and Risk Comparison
| Metric | VTV | VTI |
|---|---|---|
| Maximum Drawdown (5 Years) | -17.03% | -25.36% |
| $1,000 Growth in 5 Years (Total Return) | $1,744 | $1,779 |
What’s Inside
VTI boasts an extensive portfolio consisting of 3,484 stocks, spanning small, mid-cap, and large-cap companies. It tracks a variety of indices that include both growth and value styles, offering a wide-ranging perspective on the domestic stock market.
This ETF is heavily weighted towards technology, which makes up about 34% of its assets, followed by financial and communication services. Some of its largest holdings are Nvidia, Apple, and Microsoft.
In contrast, VTV focuses on a more concentrated selection of 309 large-cap value stocks. It targets companies considered undervalued based on specific fundamentals, rather than their industry peers. This approach creates a unique sector profile, with financial services capturing around 22% of its assets, followed by healthcare and industrials. Its leading positions include JP Morgan Chase, Berkshire Hathaway, and Exxon Mobil.
What This Means for Investors
Both VTI and VTV offer a level of stability and consistency, yet their strategies differ significantly.
VTI seeks to maximize diversification, representing the whole U.S. market. It holds a range of stocks from small-cap growth to large-cap varieties, ensuring broad exposure.
This wide diversification is beneficial for limiting risk. While tech stocks comprise about a third of the fund—mirroring the broader market—this percentage is still lower than that of many other funds targeting growth stocks. Therefore, broad market ETFs like VTI could help ease the typical volatility seen in tech investments.
The distinctive advantage of VTV lies in its focus on large-cap value stocks. These firms are usually stable with a track record of reliability, often serving as a hedge against risk. Though value stocks can lag behind other types, their higher dividend yields frequently make up for it.
Your best choice really hinges on your personal goals. VTI’s extensive market coverage makes it a favored core component in many portfolios, especially for those who prioritize diversification. Meanwhile, VTV provides steady dividends and access to a smaller, more reliable portfolio of companies with lower volatility.
