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VOO vs VIIX: Which Is The Best S&P 500 Index?

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We Compare VOO vs VIIX:

Vanguard S&P 500 ETF (VOO) vs Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX)

Both of these funds track the S&P 500 Index.

However, VOO is an Exchange-traded fund (ETF) and VIIX is an Institutional Mutual Fund.

I will make it easy for you to decide between VOO and VIIX.

VOO vs VIIX Graphic

 

VOO vs VIIX

The main difference between VOO and VIIX is, VOO is an Exchange-Traded Fund (ETF) and VIIX is a Mutual Fund.

VOO is considered an Exchange Traded Fund

VIIX is a Mutual Fund

I have another post with a full explanation of the difference between an ETF and a Mutual Fund.

VOO:

  • Tracks the performance of the S&P 500 Index
  • Has an expense ratio of 0.03%
  • No minimum initial investment
  • Holds 508 stocks

VIIX:

  • Tracks the performance of the S&P 500 Index
  • Has an expense ratio of 0.02%
  • No minimum initial investment
  • Holds 506 stocks
  • Is an Institutional index fund

 

VOO vs VIIX Performance

VOO and VIIX have had identical performances over the last 10 years.  This is not a surprise since they aim to track the same indexes (S&P 500 index).

The total return for VOO over the last 10 years is 16.1% per year.  The total return for VIIX over the last 10 years is 16.1%.

No difference!

Here is a chart illustrating this:

VOO vs VIIX Performance

VIIX (Blue)                VOO (Yellow)

Similarities between VOO and VIIX:

  • Vanguard Funds
  • Low Expense Ratios (0.03% vs 0.02%)
  • Tracks The S&P 500 Index
  • Similar Number Of Stocks

 

VOO and VIIX Differences

VOO vs VIIX primarily differs in that VOO is an ETF and VIIX is a mutual fund.  VIIX is also an institutional fund which means it can only be accessed through a retirement plan made available by your employer.

VOO is easily accessible through investment platforms like Vanguard or M1 Finance.

Differences between VOO and VIIX:

  • The Type Of Fund (ETF vs Mutual Fund)
  • Expense Ratio (0.03% vs 0.02%)
  • Where You Can Buy The Fund

 

VOO Profile

  • Fund Inception: 2010
  • Expense Ratio: 0.03%
  • Number Of Stocks: 508
  • Top 10 Holdings: 30%
  • Equivalent Admiral Fund (VFIAX)

 Vanguard S&P 500 ETF (VOO) is a very popular ETF that tracks the S&P 500 index.

VOO has over $829.0 billion in fund total net assets.

The ETF has even been a strong recommendation by the great Warren Buffett.

 

VOO Performance

Vanguard’s VOO aims to have the same performance returns as the S&P 500 index.  Therefore, VOO and the S&P 500 should always closely overlap.

VOO Performance

VOO (Blue)                S&P 500 (Yellow)

 

VOO Top 10 Holdings

VOO Top 10 Holdings

Vanguard’s VOO is largely made up of Microsoft, Apple, Alphabet, Amazon, and Tesla but also provides exposure to over 500 other stocks.

 

VIIX Profile

  • Fund Inception: 1997
  • Expense Ratio: 0.02%
  • Number Of Stocks: 506
  • Top 10 Holdings: 30%

Vanguard Institutional Index Fund Institutional Plus Shares (VIIIX) is a fund that aims to track the S&P 500 index.

Most investors in VIIX will be purchasing shares through their companies retirement accounts.

You can explore your company’s investment options or ask your employer to add VIIX.

VIIX has over $297.7 billion in fund total net assets.

 

VIIX Performance

Vanguard’s VIIX aims to have identical performance returns compared to the S&P 500 index.  Therefore, VIIX and the S&P 500 will always have similar returns.

VIIX Performance

VIIX (Blue)                S&P 500 (Yellow)

 

VIIX Top 10 Holdings

VIIX Top 10 Holdings

Vanguard’s VIIX is largely made up of Microsoft, Apple, Alphabet, Amazon, and Tesla but also provides exposure to over 500 other stocks.

 

Which Is Better VIIX or VOO?

VIIX and VOO are almost identical investments.  VIIX offers exposure to the S&P 500 at an expense ratio of 0.02% which is slightly less than VOO’s expense ratio of 0.03%.

However, this is not a meaningful difference. 

VOO is great because it is easily accessible.  There are many ways to purchase VOO like Vanguard or M1 Finance.

The important part is to purchase VOO commission-free by following one of the options above.

If you want to use M1 Finance I wrote a step-by-step guide to getting a $50 bonus for new members!

VIIX is only accessible through your company retirement plans.

Therefore, if your company doesn’t offer VIIX you would have to look for other options.

VOO makes for a great alternative if your company doesn’t offer VIIX.

They will both perform the same over the next 10 years and the difference in expense ratio won’t be significant.

For those reasons, I would say VOO is the better option due to its ease to purchase.

Similar Comparisons:

 

My Winner: VOO

My winner is VOO based on being able to invest in it in a variety of ways.

It is also a favorite recommendation of Warren Buffett!  Who am I to go against the great Oracle of Omaha.

 


Disclaimer
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This information is my opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.