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VTHR vs VTI: Which ETF is Right for Your Investment Portfolio? A Comparison of the IT Sector and Total Stock Market ETFs

BY WOM

January 22, 2023

Summary

  • VTHR tracks IT sector companies
  • VTI tracks entire US stock market companies
  • Check holdings and weightings before investing and consult financial advisor.

VTHR vs VTI are both exchange-traded funds (ETFs) that track the performance of different groups of companies, but they have some key differences and similarities.

VTHR, also known as the Vanguard Information Technology ETF, tracks the performance of companies in the information technology sector. This sector includes companies that produce and sell technology hardware, software, and services, such as computer hardware and software, semiconductors, and internet services. These companies tend to be more growth-oriented and have higher earnings growth potential.

Here are some stocks included in VTHR ETF:

  • Apple Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Amazon.com Inc. (AMZN)
  • Facebook Inc. (FB)
  • Alphabet Inc. (GOOGL)
  • Tesla Inc. (TSLA)
  • Intel Corp. (INTC)
  • NVIDIA Corp. (NVDA)
  • Advanced Micro Devices Inc. (AMD)
  • Cisco Systems Inc. (CSCO)

VTI, also known as the Vanguard Total Stock Market ETF, tracks the performance of companies across the entire stock market. This ETF is designed to provide exposure to the performance of the entire U.S. stock market, including companies in all sectors such as information technology, healthcare, consumer goods, and financials.

  • Apple Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Amazon.com Inc. (AMZN)
  • Facebook Inc. (FB)
  • Alphabet Inc. (GOOGL)
  • Berkshire Hathaway Inc. (BRK.A)
  • Johnson & Johnson (JNJ)
  • JPMorgan Chase & Co. (JPM)
  • Visa Inc. (V)
  • Procter & Gamble Co. (PG)

One of the main similarities between VTHR and VTI is that they are both ETFs and they both track the performance of companies listed in the US stock market. However, the main difference between the two is the type of companies they track. VTHR tracks companies that produce and sell technology hardware, software, and services, while VTI tracks all companies listed in the US stock market regardless of the sector they are in.

Another difference between the two is their risk-return profile. VTHR is considered more risky and more growth-oriented as the companies it tracks tend to have higher earnings growth potential, while VTI is considered less risky and more diversified as it tracks the performance of the entire stock market.

Should you invest your hard earned money in these ETFs?

You need to hear this before deciding...

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