VTSAX vs VOO: Total Market Fund vs S&P 500 ETF

Compare Vanguard Total Stock Market Index Fund (VTSAX) with Vanguard S&P 500 ETF (VOO). Mutual fund vs ETF, total market vs large-cap.

Quick Answer

VTSAX is a mutual fund covering the entire U.S. market; VOO is an ETF covering only the S&P 500. VTSAX has more holdings (~3,600 vs ~500) but a slightly higher expense ratio (0.04% vs 0.03%). Performance is nearly identical.

Side-by-Side Comparison

MetricVTSAXVOO
TypeMutual FundETF
Expense Ratio4.00%3.00%
Holdings3,645504
Dividend Yield1.28%1.24%
Min Investment$3,000None
Inception2000-11-132010-09-07
Index TrackedCRSP US Total Market IndexS&P 500 Index
AUM$369B$561B

Fund data last updated: 2025-01-02. Expense ratios, holdings, and yields may change. Always verify with official sources.

Key Differences

  • VTSAX is a mutual fund with $3,000 minimum; VOO is an ETF with no minimum
  • VTSAX covers total market; VOO covers S&P 500 only
  • VOO has slightly lower expense ratio (0.03% vs 0.04%)
  • VTSAX includes small/mid-caps; VOO is large-cap only

Which Should You Choose?

Taxable Brokerage Account

VOO has slight advantages (lower cost, ETF tax efficiency). But VTSAX's broader diversification is valuable too.

IRA (Traditional or Roth)

VTSAX is JL Collins' specific recommendation. VOO is also excellent. The difference is marginal.

401(k)

Use whichever your plan offers with the lowest expense ratio.

JL Collins' Recommendation

JL Collins specifically recommends VTSAX for its simplicity—one fund that owns 'the whole haystack.' He says owning the total market means you never have to guess which segments will outperform.

Frequently Asked Questions

Which is better: VTSAX or VOO?

Both are excellent choices with nearly identical long-term performance. VTSAX offers broader diversification; VOO has a slightly lower expense ratio and ETF tax advantages. JL Collins recommends VTSAX for simplicity.

Can I buy both VTSAX and VOO?

You can, but there's significant overlap. VOO's 500 stocks are all contained within VTSAX. If you want the simplest approach, pick one total market fund and stick with it.

Why would someone choose VOO over VTSAX?

VOO might be preferred for: lower expense ratio (0.03% vs 0.04%), no minimum investment, intraday trading capability, or if the investor believes large-caps will outperform.

Is the 0.01% expense ratio difference significant?

No. On a $100,000 portfolio, 0.01% is $10 per year. Over 30 years with compound growth, the total difference might be a few thousand dollars—negligible compared to market returns.

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This comparison is for educational purposes only. This is not financial advice. Always do your own research and consider consulting a qualified financial advisor.