To The Moon

I have grown to like ETFs overtime because when the ‘right’ ETF is purchased, the “expert” will take care of the buying & selling, leaving investor time to pursue other interests including sharing what one has learnt via post like this. Hee, hee. Below were previous posts on ETFs that I have shared: (click on title to savour) 11 Nov 2025 - Ray Dalio 13F Top Buys - IVV, SPY & NVDA. Follow ? 02 Nov 2025 - IONQ expensive ? Buy quantum ETF, WQTM ! 08 Dec 2024 - SPY’s reign over? Rise of VOO, IVV & SPLG ? This post like my previous is also about ETFs, specifically: State Street SPDR S&P 500 ETF Trust (SPY). Vanguard Total Stock Market ETF (VTI) Both are designed for broad US stock market exposure, but they differ in scope and cost. SPY tracks the S&P 500 Index, focusing on 500 of the largest US companies, representing approximately 80% of the total US market capitalization. VTI holds thousands of stocks, across all market capitalizations, offering access to a more comprehensive slice of US market, including small and mid-cap gems that the S&P 500 excludes. Before deep diving into the nitty gritty, here’s a quick overview: Based on costs structure: (see above) VTI is more affordable on fees, charging just ⅓ (one third) of SPY’s expense ratio - 0.03% for VTI versus 0.09% for SPY, that can save investors thousands in compounding costs over a 30-year horizon. It also has a slight edge on dividend yield - roughly 1.35% vs SPY's 1.24%, making it attractive for both cost-conscious and income-seeking investors. Based on performance and risk comparison: SPY has had a slightly milder maximum drawdown over the past 5 years. It also outpaced VTI in cumulative growth, suggesting marginally stronger risk-adjusted results for large-cap-focused investors, fueled largely by the 'Magnificent 7' dominance. 5 Years Performances. Historically, VTI and SPY have moved in near lock-step because they are both market-cap weighted. (see below) Both ETFs have been on an uptrend momentum since end Q3 2022, when Covid-19 status in the US was characterized by a transition toward managing the virus as a persistent, albeit seasonal, public health threat, rather than a pandemic emergency. Based on past 5 years performances ending late 2025, both SPY and VIT clocked in respectable gains of +86.62% and +75.76% respectively. Why VTI ? If I have to choose between SPY or VTI, the obvious choice (for me) would be “VTI”, due to a limited starter budget of $700. VTI, at $340.96 /unit, its price is only 49.37% of SPY at $690.62 /unit. This price point allows an investor (like me) to purchase two full units of VTI vs just one unit of SPY (with almost no leftover cash), providing more flexible selling options in the future. Eg. i could sell a single share if I need cash while keeping the other invested. Power of Broad Diversification After doing my own research and readings, I think VTI offers a more comprehensive "all-in-one" solution, that suits me. VTI casts a wide net, holding roughly 3,659 stocks as of early 2026 across the full US equity spectrum, including (a) large, (b) mid, and (c) small caps. While its largest positions are in $NVIDIA(NVDA)$, $Apple(AAPL)$ and $Microsoft(MSFT)$, it maintains a notable tilt toward Technology (33%), Financial services (13%), and Consumer cyclical (10%). It is tough to find a US equities fund more diversified than VTI. Its broad diversification helps manage volatility - if a few stocks or even an entire sector takes a turn for the worse, there are thousands of other holdings to prop up the fund, effectively diluting the impact of any single company's bankruptcy or poor earnings. Stability and Market Outlook VTI’s 24-year history and massive assets under management (AUM) of over $1.6 trillion, contribute to its liquidity and stability. On the flip side, this broad approach also exposes it to smaller, sometimes less liquid companies. For 2026, analysts have predicted that mid-cap & small-cap stocks will outperform the S&P 500, due to a more favorable interest rate environment for smaller borrowers, implying that VTI has the potential to edge out SPY in the near term. Long-Term Perspective Over the long term, owning the entire US stock market is often superior to owning just large-cap market. US large caps have outperformed, for the past few years. However, market leadership is rarely permanent and large & small caps often move in multi-year cycles. Data shows that from 2000 to 2010, the "Lost Decade" small caps significantly outpaced large caps. Owning both groups allows an investor to capture the above-average return potential of smaller companies while smoothing out market highs and lows through superior diversification. Now, Good Time To Enter ? Although it’s still early 2026, US market has already witnessed a big rotation away from Megacap growth stocks that have driven it lately. As of 02 Feb 2026, Tech sector is only the 8th best-performing S&P 500 sector; out of the 11 total and it trails the S&P 500 by about -1.5% YTD. The best performers (so far) are sectors that have gone “unnoticed” for years: $Energy Select Sector SPDR Fund(XLE)$. $Materials Select Sector SPDR Fund(XLB)$ $Consumer Staples Select Sector SPDR Fund(XLP)$ Not only are they outperforming, but they are also beating the S&P 500 by at least +7% YTD. Small caps are leading by about +5%. Value is leading by +4%. Even low-volatility stocks are ahead by about +1.5%. This helps demonstrate that diversification still works. If small-caps are indeed in the early stages of a lengthier cycle of outperformance relative to large caps, VTI could continue to outperform S&P 500, as it has so far in 2026. This ETF also helps mitigate some of the risk of high valuations by lowering the weighted P/E ratio of the portfolio and may lower overall portfolio risk in the process. With its low fees and coverage of entire US market, VTI is a reliable, straightforward choice for any investor, looking to build long-term wealth without the guesswork. Agree ? Remember to check out my other posts. (See below). Help to Repost ok, Thanks. Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks. Burry vs PLTR, NVDA & ORCL. How's it, so far ? Will S&P 500 Bottoms with Q4 Earnings ending ? XLV - Answer to Volatile US Market & Strong Jobs ? Do you think the SPY is a “better” ETF than VTI ’? Do you think VTI will outperform both S&P 500 and SPY this year ? If you find this post interesting, give it wings! ️ Repost and share the insights ? Do consider “Follow me” and get firsthand read of my daily new post. 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