VTI VS VOO VS VUG & other questions

[Scallywag]

Hey SA family,

1. Help me understand how VUG / VTI / VOO are *different* to each other? I've thought and thought about this but my brain's fried. I must be missing something ... what is it? Help me understand this.

We have VOO in his ROTH and 401K a/cs but no VTI and VUG. This was suggested to me a month ago and I notice (on Morningstar portfolio) that they seem to hold almost the same companies? That's why I'm asking for you guys' help. What is DIFFERENT about these shares?

2. Does it make sense to buy single stocks at this time? I expect a meltdown in Sept (just a gut instinct and I PRAY I'm wrong). We're still DCA-ing into mutual funds & ETFs in our retirement a/c but a couple of stocks are very attractive to me (not mentioning which they are so I don't inadvertently introduce any biases) so just need your overall opinion on whether it's a good idea to take on more risk by buying individual stocks now?

TIA. Your feedback is much appreciated.

[disneysteve]

1. Help me understand how VUG / VTI / VOO are *different* to each other? I've thought and thought about this but my brain's fried. I must be missing something ... what is it? Help me understand this.

VUG is a growth index fund that holds just 260 stocks.

VOO is an S&P 500 index fund that holds the 503 stocks that make up the index.

VTI is a total US stock market index fund that holds 4076 stocks that make up the whole US market.

I listed them in order from most concentrated to least concentrated as far as how many stocks they hold.

VUG and VOO hold mainly or entirely large company growth stocks.
VTI holds everything whether large, mid, or small cap stocks.

Of course there will be a lot of overlap between the funds. Everything in VUG and VOO is also in VTI. Everything in VUG is probably also in VTI. The difference is the degree of diversification and, in turn, the risk you're taking by making a more or less concentrated bet. There are periods in time where large company growth stocks outperform, but there are also periods where small company value stocks outperform. VTI covers all of it where the other two focus on the large growth sector.

[disneysteve]

2. Does it make sense to buy single stocks at this time?

I'm not generally a fan of buying individual stocks though I do own several. I just don't actively seek them out or trade. Is it worth more risk? Only you can answer that. If you've done the research and believe that particular companies are poised to outperform the broader market and you're willing to take that risk, that's fine. Just keep in mind that with exceedingly rare exception, the indexes always outperform the active stock pickers.

[Jluke]

VOO is perfectly fine for your Roth and 401k

if you wanted to open a taxable account then I would recommend using VTI there so that you can tax loss harvest when needed. Easier when you don’t hold that fund across several accounts.

[LivingAlmostLarge]

I think voo is also fine in lieu of vti