Large Cap (VOO) vs Total Market (VTI) considering Covid-19

[fire161007]

Would you recommend S&P 500 Large Cap (VOO) or Total Market Index (VTI) for someone who recently retired?

Historically I have been investing in Large Cap and it has out performed Total Market over the past 10 years. Most people recommend Total Market due to diversification. Management fees and Yields are evenly matched.

Considering the "unprecedented times" we are in, which do you think is the better investment. Some may say that Large Caps have already rebounded so there there is more growth in Small and Mid Caps. Others will say that many Smaller businesses will go bankrupt as they will not have the cash reserves that Big companies has to weather the storm.

What are your thoughts?

 

[38Chevy454]

My thought is what are your other investments? I would not have all of my savings in one fund, or 100% equities.

Just pick an AA that meets your risk tolerance and financial needs. Then investments that match the AA. Rebalance every so often based on market performance. The deviation threshold is up to you.

 

[fire161007]

My thought is what are your other investments? I would not have all of my savings in one fund, or 100% equities.

Just pick an AA that meets your risk tolerance and financial needs. Then investments that match the AA. Rebalance every so often based on market performance. The deviation threshold is up to you.

Good point. I have about a 65/35 asset mix - all ETFs. I'm Canadian so I have a slight home bias due to preferential tax treatment for Canadian Dividends.
- 20% Canadian Equities
- 20% US Equities
- 20% International Equities
- 5% Emerging Markets
- 30% Bonds
- 5% Cash

This question is about the Canadian and US equity markets which make up 50% of my portfolio.

 

[HI Bill]

Originally, I held all VTI, then 'chased performance' by transitioning some to VOO; however, regarding market volatility, the OP's point is correct that VTI is the market; however, the overall performance of the two, over the long-run, doesn't seem all that different, due to the over-weighting of the top stocks.

Here's a link to VG's website, comparing the two:

https://personal.vanguard.com/us/funds/vanguard/compare?navigatingFrom=4

 

[Brat]

In the era of Covid19 I would go with VUG. Large Cap Growth.