From 24/7 Wall St. · Ryne Mauck · · 1m 10s
VTI's 3,000 Extra Stocks Cost Holders $393,400 Per $500,000
VTI's 3,000 extra stocks cost holders $393,400 per $500,000 over a decade.
In brief
VTI's 3,000 extra stocks cost holders $393,400 per $500,000 over a decade. VTI's 3,000 extra stocks cost holders $393,400 per $500,000 over ten years compared to S&P 500. Originally reported by 24/7 Wall St..
VTI's 3,000 Extra Stocks Cost Holders $393,400
Over ten years, VTI's 3,000 extra stocks cost holders $393,400 per $500,000 compared to S&P 500 returns.
VTI Returns 243.42% Over Ten Years
VTI grew from $111.15 to $381.71 per share over ten years, returning 243.42% on a price basis.
S&P 500 Returns 322.10% Over Ten Years
The S&P 500 grew from $168.94 to $713.11 per share, returning 322.10% over the same period.
78.68 Percentage-Point Spread
A $500,000 stake in VTI grew to $1,717,100 versus $2,110,500 in S&P 500, a 78.68 percentage-point gap.
Composition Drives Shortfall
VTI's extra 3,000 small- and mid-cap stocks underperformed, diluting exposure to large-cap winners over ten years.
Weighting Makes Drag Persistent
Both funds are market-cap weighted, but VTI adds lagging small caps that dilute returns each year over ten years.
Cheaper Alternatives Exist
Switching to VOO or ITOT removes VTI's 3,000 extra stocks, potentially improving returns in small-cap cycles.
In short
VTI's 3,000 extra stocks cost holders $393,400 per $500,000 over ten years compared to S&P 500.
