# Vanguard World vs Vanguard S&P500
**URL:** https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326
**Category:** Investing / Portfolios
**Created:** [October 7, 2018, 3:23pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326 "2018-10-07T15:23:55Z")
**Posts on this page:** 11
**Page:** 1
### Author:  [@ajPT](https://forum.mustachianpost.com/u/ajPT)
#### Post date: [October 7, 2018, 3:23pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/1 "2018-10-07T15:23:56Z")
I’m new here and in the investment world. Everywhere I read all the people suggest to buy VT.
After searching for a bit (and for my untrained eye), why not Vanguard S&P500 instead?
Expense Ratio:
VOO: 0.04%
VT: 0.1%
Performance:
VOO:
[https://www.marketwatch.com/investing/fund/voo](https://www.marketwatch.com/investing/fund/voo)
VT:
[https://www.marketwatch.com/investing/fund/vt](https://www.marketwatch.com/investing/fund/vt)
Thanks in advance for your replies.
---
### Author:  [@weirded](https://forum.mustachianpost.com/u/weirded)
#### Post date: [October 7, 2018, 4:40pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/2 "2018-10-07T16:40:16Z")
1. Investor’s mantra: “_past performance is not indicative of future results_”
This said, VOO invests in 510 stocks, VT in 8’109.
VOO represents only U.S. large caps, VT also has Europe, Pacific + EM.
In this period, U.S. overperforms the other markets, but 1) still applies…
think about [Nikkei](https://upload.wikimedia.org/wikipedia/commons/6/6d/Nikkei_225%281970-%29.svg)…
---
### Author:  [@ajPT](https://forum.mustachianpost.com/u/ajPT)
#### Post date: [October 7, 2018, 5:26pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/3 "2018-10-07T17:26:05Z")
It’s a matter of diversification then?
---
### Author:  [@1000000CHF](https://forum.mustachianpost.com/u/1000000CHF)
#### Post date: [October 7, 2018, 5:34pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/4 "2018-10-07T17:34:40Z")
Yes:
> [@Can I use a S&P500 ETF instead of a World ETF as my primary fund?](https://forum.mustachianpost.com/t/can-i-use-a-s-p500-etf-instead-of-a-world-etf-as-my-primary-fund/767/3):
>
> There are two popular views on this topic and there are index investing authorities supporting both opinions: John Bogle, for example, thinks that US market is a proxy to the global market because half of the income of American companies comes from abroad, and the VTI is cheaper (0.04) than VT (0.11), so he thinks investing in US is good enough diversification. Burton Malkiel, on the other side, thinks that even if you invest in VT, you still overweight US and underweight some EM (for example …
---
### Author:  [@ajPT](https://forum.mustachianpost.com/u/ajPT)
#### Post date: [October 7, 2018, 5:45pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/5 "2018-10-07T17:45:30Z")
Thank you for the link!
---
### Author:  [@Joey](https://forum.mustachianpost.com/u/Joey)
#### Post date: [October 7, 2018, 7:53pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/6 "2018-10-07T19:53:08Z")
Another thing to consider: VOO looks like it performed alot better than VT for the last couple of years, but if you factor in the USD/CHF currency exchange VOO doesnt beat VT by that much any more.
This is only relevant if your base currency is CHF
---
### Author:  [@hedgehog](https://forum.mustachianpost.com/u/hedgehog)
#### Post date: [October 8, 2018, 12:36am UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/7 "2018-10-08T00:36:24Z")
> [@Joey](#):
>
> Another thing to consider: VOO looks like it performed alot better than VT for the last couple of years, but if you factor in the USD/CHF currency exchange VOO doesnt beat VT by that much any more.
Not really, currency rate affects both equally
---
### Author:  [@Joey](https://forum.mustachianpost.com/u/Joey)
#### Post date: [October 8, 2018, 11:38am UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/8 "2018-10-08T11:38:41Z")
That is true, I was talking specifically about the USD though. It affects VOO more because thats 100% in american equities vs ~56% in VT.
I know this isnt everything, like you have pointed out the currency exposure of companies revenue stream also matters, but the USDCHF exchange rate is something you have to consider if you go full VOO imo.
---
### Author:  [@Bojack](https://forum.mustachianpost.com/u/Bojack)
#### Post date: [October 8, 2018, 3:42pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/9 "2018-10-08T15:42:51Z")
> [@ajPT](#):
>
> I read all the people suggest to buy VT. Why not Vanguard S&P500 instead?
I guess this is a very good question for the FAQ section. I already put a fitting chart in there a long time ago, just without description. I think we discussed this question already.
The green curve is USA (VTI, VOO, S&P 500), the orange is the rest of the World (VXUS). As you can see, if you invested some money 50 years ago, you would achieve pretty similar results with both. The thing is, the World ETF (VT) is an average of the two.
---
### Author:  [@ajPT](https://forum.mustachianpost.com/u/ajPT)
#### Post date: [November 1, 2018, 2:30pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/10 "2018-11-01T14:30:55Z")
> Last June, Vanguard Group removed the S&P 500 index fund from its own employee 401(k) retirement plan and replaced it with a total stock market index fund. The reason: The total stock market fund covers large-cap, mid-cap and small-cap stocks, while the S&P 500 covers only the large-cap universe.
> **[Oversold: The best core stock index fund for long-term investors may not be...](https://www.cnbc.com/2018/09/11/most-investors-choose-sp-500-as-their-best-long-term-stock-bet-but-vanguard-move-shows-that-may-be-wrong.html)**
>
> Most American investors think of the S&P 500 as being the core index for investing in US stocks, but a total stock market approach may be the wiser bet. Vanguard Group is a believer in focusing on the broader universe of equities if you can...
---
### Author:  [@Bojack](https://forum.mustachianpost.com/u/Bojack)
#### Post date: [November 1, 2018, 3:00pm UTC](https://forum.mustachianpost.com/t/vanguard-world-vs-vanguard-s-p500/1326/11 "2018-11-01T15:00:29Z")
It seems pretty obvious after you consider this chart:
