pkumom2016
New member
I'm genuinely curious why people often think VT is a better choice over VTI or another S&P 500 type ETF.
I know VT tracks a more global market but if you look at the chart since 2008, the ebbs and flows are directly correlated to how the U.S. Market performs, while the performance of VT severely under performs VTI. The largest U.S. companies are also global so you're already getting global diversification.
On top of that, the expense ratio for VT is 0.05%. While that's low, VTI is only 0.03%.
For example, look at the performance comparison from 2008 to today for both ETFs. Your money with VTI would have increased 270% and only 102% with VT.
That's a massive difference but for what benefit?
So those of you who invest in VT, please explain your logic.
I know VT tracks a more global market but if you look at the chart since 2008, the ebbs and flows are directly correlated to how the U.S. Market performs, while the performance of VT severely under performs VTI. The largest U.S. companies are also global so you're already getting global diversification.
On top of that, the expense ratio for VT is 0.05%. While that's low, VTI is only 0.03%.
For example, look at the performance comparison from 2008 to today for both ETFs. Your money with VTI would have increased 270% and only 102% with VT.
That's a massive difference but for what benefit?
So those of you who invest in VT, please explain your logic.