Better Buy: Vanguard Total Stock Market ETF or Vanguard S&P 500 ETF?
Many investors subscribe to the idea of index investing, but figuring out which index fund they should own can leave them somewhat paralyzed.
Two common recommendations are the Vanguard Total Stock Market ETF (NYSEMKT: VTI) and the Vanguard S 500 ETF (NYSEMKT: VOO). Both Vanguard funds earn high marks from index investors thanks to their low expense ratios and strong track record of matching their respective indexes. Either could provide a great foundation for a portfolio.
Where they differ is in which index they track. The Total Stock Market fund tracks the CRSP US Total Market Index, which captures practically every investable U.S. stock in the market. The S 500 ETF tracks the S 500, which is a collection of about 500 of the largest U.S. companies that have been consistently profitable for at least a year.
Source Fool.com
