VTI VS VB: A Comprehensive Comparison of ETFs
4 min read
By Ron Koren, ETF Insider

VTI VS VB: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) have transformed the investment landscape by providing investors with diversified exposure to various sectors and asset classes. In this article, we'll conduct an in-depth comparison between two prominent ETFs: VTI (Vanguard Total Stock Market ETF) and VB (Vanguard Small-Cap ETF). We will explore crucial aspects such as tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

VTI VS VB: Overview

VTI and VB are two ETFs that cater to different segments of the stock market. While VTI aims to replicate the performance of the entire U.S. stock market, VB targets the small-cap segment. This distinction leads to varying risk and return profiles, which we will delve into in the subsequent sections.

VTI VS VB: Sectors and Top Holdings

VTI provides broad exposure to the entire U.S. equity market, encompassing sectors like technology, finance, healthcare, and more. Its holdings include prominent companies such as Apple, Microsoft, and Amazon. In contrast, VB focuses on small-cap companies, offering exposure to firms with smaller market capitalizations. Understanding the sectors and top holdings of each ETF is essential for investors to align their investment objectives with the appropriate ETF.

VTI overlap VTI VS VB: A Comprehensive Comparison of ETFsVTI overlap VTI VS VB: A Comprehensive Comparison of ETFs

VTI VS VB: Capitalization and Strategy

VTI boasts a substantial asset under management (AUM) due to its comprehensive coverage of the total stock market. On the other hand, VB's strategy centers around providing investors with exposure to the potential growth of small-cap companies. The difference in capitalization and investment strategy translates into distinct risk-return profiles for these ETFs, requiring investors to evaluate their risk tolerance and investment goals.

VTI VS VB: Tracking and Exposure

VTI tracks the CRSP US Total Market Index, which represents nearly 100% of the U.S. stock market capitalization. This approach ensures comprehensive exposure to large-, mid-, small-, and micro-cap stocks. Meanwhile, VB tracks the CRSP US Small Cap Index, concentrating on the small-cap segment. The tracking methods and exposure strategies differ, emphasizing the importance of understanding the specific focus of each ETF.

Conclusion

VTI and VB serve as distinct vehicles for investors seeking exposure to different segments of the U.S. stock market. To gain deeper insights into their holdings, correlations, overlaps, and other critical information, ETF Insider offers a user-friendly app that provides comprehensive details about these and other financial instruments.

Disclaimer: This article does not provide any investment advisory services.

Sources:

Vanguard. (n.d.). Vanguard Total Stock Market ETF (VTI). Retrieved from https://investor.vanguard.com/etf/profile/VTI
Vanguard. (n.d.). Vanguard Small-Cap ETF (VB). Retrieved from https://investor.vanguard.com/etf/profile/VB

VTI ETF issuer
VTI ETF official page

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