Vanguard SP 500 ETF vs FTSE All-World: Which Should You Invest In?

Introduction

If you're looking to invest a big chunk of your savings, you're probably wondering which index fund is right for you. Two of the most popular options are the Vanguard SP 500 ETF (VOO) and the FTSE All-World ETF (VT). Both funds offer low fees and broad diversification, but they have different investment strategies and risk profiles.

Vanguard SP 500 ETF (VOO)

The Vanguard SP 500 ETF tracks the S&P 500 index, which is a collection of the 500 largest publicly traded companies in the United States. VOO is a passively managed fund, which means that it simply tracks the index and does not make any active investment decisions. This results in lower fees than actively managed funds, but it also means that VOO's performance will be closely tied to the performance of the S&P 500 index.

FTSE All-World ETF (VT)

The FTSE All-World ETF tracks the FTSE All-World index, which is a collection of stocks from over 90 different countries. VT is also a passively managed fund, but it offers more diversification than VOO because it invests in a wider range of companies.

Which Fund is Right for You?

The best fund for you depends on your investment goals and risk tolerance. If you're looking for a low-cost, diversified fund that tracks the performance of the U.S. stock market, then VOO is a good option. If you're looking for a more diversified fund that includes stocks from around the world, then VT is a good option.

Conclusion

both VOO and VT are solid investment options. However, the best fund for you will depend on your individual investment goals and risk tolerance.