VTI and VOO: Why One Investor Is Doubling Down on These Vanguard ETFs

Geopolitical uncertainty can create swings in the market, and the past month has offered a reminder of how quickly sentiment can shift. That said, with stocks rebounding over the past week, investors may be weighing whether to stay the course in equities or consider allocating part of their portfolio to more defensive assets such as bonds, precious metals, or certificates of deposit.

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For those looking for a middle ground, ETFs present a compelling alternative. While they don’t fully sidestep market pullbacks, they do soften the blow by spreading exposure across a basket of assets, offering built-in diversification in a single, streamlined investment.

That’s the approach investor Katie Brockman is leaning into right now, pointing to a pair of broad-based Vanguard funds as sensible options in the current setup – the **Vanguard Total Stock Market ETF **VTI +0.45% ▲ and the **Vanguard S&P 500 ETF **VOO +0.44% ▲ .

The first “ultra-reliable” ETF she spotlights is VTI, which is made up of roughly 3,500 stocks representing a broad range of U.S.-listed equities. It has edged lower so far this year, sliding about 3%.

Looking beyond this dip, VTI has been a powerful tool for growth, with 1-, 3-, and 10-year gains of 14%, 57%, and 197%, respectively. Its beta of 1.01 suggests the ETF moves largely in sync with the market, while its expense ratio of 0.03% ranks among the lowest available.

While VTI may falter from time to time, alongside the broader market, Brockman argues that it remains a compelling long-term investment.

“Historically, the market itself has recovered from every single recession it’s ever faced,” the investor notes. “It is highly likely that the Total Stock Market ETF will also rebound from future downturns.”

Moving along, Brockman also suggests that investors take a good, hard look at VOO. While it represents a significantly narrower ETF, the investor notes that VOO has one key advantage over VTI: “it only contains large-cap stocks.”

VOO tracks the S&P 500, meaning its holdings come from more stable and established companies, as reflected in its beta of 0.99. Though volatility remains a possibility, especially given the index’s heavy weighting toward tech names, VOO “tends to thrive” over the long haul.

“Over the past 82 years, however, there’s never been a 10-year period in which the S&P 500 posted negative total returns,” the investor points out. While it’s also on a downward trajectory this year, VOO has performed well over 1-, 3-, and 10-year intervals, with returns of 13%, 58%, and 207%, respectively.

And, similar to VTI, VOO is also a relatively cheap investment to hold, with an identical expense ratio of 0.03%.

In short, Brockman isn’t deterred by a potential slowdown, declaring that both VTI and VOO are “unstoppable Vanguard ETFs to load up on if the U.S. enters a recession.” (To watch Katie Brockman’s record, click here)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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