Recent returns for VOO and VTI seem to confound conventional wisdom that stocks of small and medium companies outperform large-cap issues in the long run.wo of the five biggest U.S. exchange-traded funds are a pair of siblings from the low-cost Vanguard family that have not been performing as you might expect over the past five years. The sports $473.
In the contest between the Vanguard funds, however, the addition of the small stocks in VTI does not seem to have led to better performance over the past decade than the large caps alone—at least on a superficial basis. Fact sheets for the two investments showfor each of the last 1-year, 3-year, 5-year, and 10-year periods through March 31, although both funds had sizable gains in all those periods.
Looking at it that way, over the 10 years through 2023 each fund had the best return five times and all of the wins were consecutive streaks. VTI prevailed from 2014 to 2018 and VOO had the better results in 2019 to 2023. Measured another way, investors who put equal sums of money into both funds once a year for the last 10 calendar years would only have been about 3% ahead in VOO, and it only took the lead in in 2021.
“Over the short term, we do not expect that to happen, as a lot of the key growth items, such as GPU sales for Nvidia, seem to be derisked for the next several quarters given current order backlogs, but if outlooks start to show unexpected deceleration, watch out,” he says.’s graphics processing units, a kind of computer chip, is widely used to power hardware for artificial intelligence and also in mining bitcoin.