Vanguard Total Market ETF Beats S&P 500 Fund in 2026 as Small Caps Rebound
Updated
Updated · The Motley Fool · Aug 16
Vanguard Total Market ETF Beats S&P 500 Fund in 2026 as Small Caps Rebound
3 articles · Updated · The Motley Fool · Aug 16
Summary
VTI returned 14.6% through Aug. 13, topping VOO’s 13.9% and breaking the S&P 500 fund’s outperformance streak from 2022 through 2025.
That shift reflects VTI’s broader reach across 3,531 U.S. stocks, including small- and mid-caps that have rebounded after years when mega-cap growth names drove returns.
VOO remains more concentrated in the biggest winners: its top 10 holdings make up 37.9% of assets versus 33.3% for VTI, including a 7.5% Nvidia weight against 6.3%.
Valuation also favors the broader fund’s smaller-stock exposure, with Vanguard’s small-cap ETF at a 22.3 P/E versus 27.5 for the S&P 500 ETF.
Both funds charge 0.03%, but VTI’s flexibility may widen the gap because it can add new listings earlier—already holding 18.74 million SpaceX shares while VOO cannot buy it before 2027.