Voo Stock Faces 27 P/E as VTI Trades Cheaper
Voo stock faces a 27 price-to-earnings ratio, while the Vanguard S&P Small-Cap 600 ETF trades at 18 times earnings. For investors deciding between the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF, that gap matters because the smaller-stock sleeve could do better if the long-running size trade reverses.
VOO and VTI holdings
The Vanguard S&P 500 ETF, ticker VOO, tracks the S&P 500, a basket of 500 of the largest U.S. stocks. The Vanguard Total Stock Market ETF, ticker VTI, follows the CRSP U.S. Total Market Index and aims to include virtually every investable U.S. stock, with nearly 3,500 companies across all market caps.
$1.6 trillion in combined assets sits across the two funds, and about 88% of their holdings overlap. That makes them look and act very similar today, but it also means the smaller slice inside VTI can matter more than the label suggests if the market starts rewarding lower valuations and broader participation.
2026 small-cap earnings
2026 is the first year in years when small caps are forecast to see stronger earnings growth than the S&P 500. Over the past 10 years, smaller stocks have been a drag on performance, so that forecast marks a sharp break from the recent pattern rather than a minor shift in leadership.
27 times earnings for VOO against 18 times earnings for the Vanguard S&P Small-Cap 600 ETF leaves a clear valuation spread between large and smaller companies. If small caps do catch up on earnings and price performance, VTI has the broader exposure to benefit from that rotation because it reaches beyond the 500 largest names and into the rest of the investable U.S. market.
VTI if small caps lead
88% overlap keeps the two ETFs tightly linked, which is why the choice is not about finding a radically different portfolio. It is about deciding whether to pay up for the largest names through VOO or to buy the wider market through VTI and keep exposure to the part of the market that could narrow the gap if small caps outperform in 2026.
