VTSAX vs. VFIAX | Which is Best For You?

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If you are looking for a low-cost and diversified way to invest in the U.S. stock market, you may have come across two popular index funds from Vanguard: VTSAX and VFIAX.

Both of these funds offer broad exposure to the U.S. equity market, but they have some key differences that you should be aware of before choosing which one to invest in.

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Overview of VTSAX and VFIAX

VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares) is a total stock market index fund, meaning that it holds a slice of every publicly traded company in the U.S. stock market.

This makes it the most diversified fund available, as it holds about 3,800 stocks across all sectors and market capitalizations. VTSAX aims to track the performance of the CRSP US Total Market Index, which covers 100% of the investable U.S. equity market.

VFIAX (Vanguard 500 Index Fund Admiral Shares) is an S&P 500 index fund, meaning that it holds the 500 largest companies in the U.S. stock market.

This makes it still diversified, but less so than VTSAX, as it holds only about 13% of the total U.S. equity market. VFIAX aims to track the performance of the S&P 500 Index, which is widely regarded as the best single gauge of the U.S. equity market.

Both VTSAX and VFIAX are passively managed, meaning that they do not try to beat the market but rather match its performance. They also have very low expense ratios, which means that they charge very little fees to investors.

Both funds are suitable for long-term investors who want to capture the growth of the U.S. stock market, but they have different risk and return profiles that you should consider.

VTSAX vs. VFIAX Returns Comparison

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One of the most important factors to consider when comparing VTSAX vs. VFIAX is their historical returns. How have these funds performed over time, and which one has delivered higher returns for investors?

The answer is that over the long term, VFIAX has slightly outperformed VTSAX by a small margin. VFIAX generated a bit more return than VTSAX over the past decade, but the difference was not very significant.

The reason why VFIAX has slightly outperformed VTSAX is that it is less diversified and, therefore, more concentrated in the large-cap segment of the market.

Large-cap stocks are generally more stable and profitable than small-cap and mid-cap stocks, and they have performed better in the past decade.

However, this does not mean that VFIAX will always outperform VTSAX, as there may be periods when small-cap and mid-cap stocks outperform large-cap stocks.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

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Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

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As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

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VTSAX vs. VFIAX Dividend Yield Compared

FundDividend Yield
VTSAX1.58%
VFIAX1.59%

Another factor to consider when comparing VTSAX vs. VFIAX is their dividend yield.

Both VTSAX and VFIAX pay dividends quarterly, and they have very similar dividend yields. The dividend yield for VTSAX is 1.58%, while the dividend yield for VFIAX is around 1.59%.

This means that both funds pay about the same amount of dividends to their investors, and they are not a major factor when comparing them.

VTSAX vs. VFIAX Expense Ratio Comparison

FundExpense Ratio
VTSAX0.04%
VFIAX0.04%

Another factor to consider when comparing VTSAX vs. VFIAX is their expense ratio. The expense ratio is the percentage of a fund’s assets that are used to cover its operating expenses, such as management fees, administrative costs, and marketing expenses.

The expense ratio is important because it reduces the fund’s net return to investors, and it can have a significant impact on the fund’s performance over time.

Both VTSAX and VFIAX have very low expense ratios, which is one of their main advantages over other funds. The expense ratio for both VTSAX and VFIAX is 0.04%.

This means that for every $10,000 invested in either fund, you would pay only $4 in annual fees. This is much lower than the average expense ratio of 0.82% for U.S. equity funds, and it makes both funds very cost-efficient.

VTSAX vs. VFIAX Holdings Comparison

Another factor to consider when comparing VTSAX vs. VFIAX is their holdings. Their holdings are important because they affect the fund’s risk and return characteristics, as well as its diversification and correlation with the market.

VTSAX is a total stock market fund, and it holds around 3,800 companies across all sectors and market capitalizations.

VFIAX is an S&P 500 fund, and it holds around 500 companies that represent the largest and most influential companies in the U.S. stock market.

Both VTSAX and VFIAX have similar top holdings, as they are mostly composed of the same large-cap companies. However, VTSAX also holds many more small-cap and mid-cap companies, which gives it more exposure to different sectors and industries.

Both VTSAX and VFIAX are diversified enough to be a core investment holding, but VTSAX will be a bit less volatile than VFIAX, as it holds more companies.

VTSAX vs. VFIAX Minimum Investment

Both VTSAX and VFIAX have a minimum investment of $3,000, which means that you need to have at least that amount of money to invest in either fund.

This can be a barrier for some investors who want to start investing with a smaller amount of money or who want to diversify their portfolio with multiple funds.

However, there is a way to invest in VTSAX and VFIAX with as little as a few dollars, and that is by using their ETF versions.

VTSAX vs. VFIAX ETF Versions

An ETF, or exchange-traded fund, is a type of fund that trades on an exchange like a stock and that tracks the performance of an underlying index or asset. ETFs have many advantages over mutual funds, such as lower fees, higher liquidity, and more tax efficiency.

VTI (Vanguard Total Stock Market ETF) is the ETF version of VTSAX, and it aims to track the same index as VTSAX.

VOO (Vanguard S&P 500 ETF) is the ETF version of VFIAX, and it aims to track the same index as VFIAX, the S&P 500 Index.

Both VTI and VOO have the same holdings, returns, dividends, and risk profiles as their mutual fund counterparts, VTSAX and VFIAX.

However, one difference is that VTI and VOO have slightly lower expense ratios than VTSAX and VFIAX. The expense ratio for both VTI and VOO was 0.03%, while the expense ratio for both VTSAX and VFIAX was 0.04%.

This means that for every $10,000 invested in either ETF, you would pay only $3 in annual fees, which is $1 less than the mutual fund versions.

Another difference is that VTI and VOO have no minimum investment, unlike VTSAX and VFIAX, which have a minimum investment of $3,000.

The most significant difference is that VTI and VOO can be purchased with fractional shares, which means that you can buy a fraction of a share of either ETF, such as 0.1 or 0.01.

etf vs mutual fund

Fractional shares allow you to invest any amount of money that you want, regardless of the share price of the ETF. This makes it even more accessible and flexible for investors who want to invest in VTSAX and VFIAX.

Fractional shares are not available for all brokers, but one of the best ones that offer this feature is tastytrade. Additionally, tastytrade usually offers a cash sign-up when you open a new account. You can check out this tastytrade referral code article for more information!

VTSAX vs. VFIAX – Determine Which One is Best For You!

Now that you have learned about the differences and similarities between VTSAX and VFIAX and their ETF versions, VTI and VOO, you may be wondering which one is best for you.

Ultimately, both VTSAX and VFIAX are excellent funds that offer low-cost and diversified exposure to the U.S. stock market. They are both suitable for long-term investors who want to capture the growth of the U.S. economy, and they have both delivered impressive returns over time.

However, if you have to choose one, you may want to consider the following factors:

  • If you prefer more diversification and more exposure to small-cap and mid-cap stocks, you may want to choose VTSAX, as it holds more companies and covers more sectors and industries than VFIAX.
  • If you prefer more exposure to large-cap stocks, you may want to choose VFIAX, as it holds fewer companies and is more concentrated in the large-cap segment of the market than VTSAX.
  • If you prefer more flexibility and more accessibility, you may want to choose VTI or VOO, as they have slightly lower fees, no minimum investment, and fractional shares than VTSAX and VFIAX.

Whatever you choose, you can’t go wrong with either VTSAX or VFIAX or their ETF versions, VTI or VOO. They are all great funds that can help you achieve your financial goals and grow your wealth over time.

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Russell 1000 vs. 2000 vs. 3000

JEPI vs. JEPIX | Which is Best For You?

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If you are looking for a fund that tracks a basket of stocks and uses a covered call strategy to generate income and pay out monthly dividends, you might have come across JEPI and JEPIX.

These two funds are essentially the same, except JEPI is an exchange-traded fund (ETF) while JEPIX is a mutual fund.

JEPIX has a higher expense ratio as well, but otherwise, the funds are nearly identical.

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JEPI vs. JEPIX Minimum Investment

One of the main differences between JEPI and JEPIX is the minimum investment required to buy them.

JEPI has no minimum investment, which means you can buy as many or as few shares as you want. If your broker offers fractional shares, you can invest with as little as $1.

JEPIX, on the other hand, has a minimum investment of $1,000,000, making it only available to high net worth investors or institutional clients.

JEPI vs. JEPIX Dividend

Both JEPI and JEPIX pay monthly dividends to their shareholders, which can provide a steady stream of income.

The dividend yield of both funds varies between 6% – 12% depending on the market conditions and the performance of the underlying stocks.

However, these yields are not guaranteed and will always fluctuate.

JEPI vs. JEPIX Fees & Expenses

FundExpense Ratio
JEPI0.35%
JEPIX0.60%

Another difference between JEPI and JEPIX is the fees and expenses that they charge to their investors.

JEPIX has a higher expense ratio than JEPI, which means it costs more to run the fund. JEPI has an expense ratio of 0.35%, while JEPIX has an expense ratio of 0.60%.

This means that for every $10,000 invested in each fund, JEPI would charge $35 while JEPIX would charge $60 per year.

JEPI vs. JEPIX Total Return Performance

Despite the differences in fees and expenses, both JEPI and JEPIX have generated nearly identical returns since their inception.

The slight difference in performance may be attributed to the difference in fees and expenses, as well as the timing and execution of the covered call strategy.

jepivsjepixcomparison
Image From JP Morgan Website

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

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Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

tradingview adj icon

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

JEPI vs. JEPIX Holdings

Both JEPI and JEPIX have nearly identical allocations and holdings, as they both track the same basket of stocks from the S&P 500 index.

Other ETF Comparisons

If you are interested in comparing other ETFs that use a covered call strategy or offer high dividend yields, you can check out our other articles, such as:

JEPI vs. JEPIX | Bottom Line

JEPI and JEPIX are both funds that track a basket of stocks from the S&P 500 index and use a covered call strategy to generate income and pay out monthly dividends.

They are essentially the same fund, except JEPI is an ETF while JEPIX is a mutual fund.

JEPI has no minimum investment, while JEPIX has a minimum investment of $1,000,000.

JEPIX has a higher expense ratio than JEPI, which means it costs more to run the fund.

Both funds pay monthly dividends, but the yield varies depending on the market conditions and the performance of the underlying stocks.

If you are looking for a fund that offers a high dividend yield and a covered call strategy, you might want to consider JEPI or JEPIX, depending on your investment goals and preferences.

However, you should also be aware of the risks and limitations of this strategy, such as the potential for lower capital appreciation, higher volatility, and tax implications.

If you want to learn more about JEPI and JEPIX or compare them with other funds, you can sign up for TradingView, a platform that allows you to track all markets from a single place easily.

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You can also use TradingView to create charts, indicators, alerts, and more to enhance your trading and investing experience. If you sign up using my affiliate link, you can get a discount on your subscription.

Disclaimer: Financial Tech Wiz is an affiliate of TradingView and will be compensated if you sign up and purchase a TradingView subscription using our link.

The 6 Best Indicators for Day Trading

best indicators for day trading

Day trading is a style of trading that involves opening and closing positions within the same day, taking advantage of small price movements in the market.

In this article, we will discuss some of the best indicators for day trading, how they work, and how to use them on the best charting platform available.

The Best Charting Platform With Integrated Indicators

One of the most important tools for day trading is a reliable and powerful charting platform that allows you to access real-time data, customize your charts, and apply various indicators to analyze the market. There are many charting platforms available online, but one of the best ones is TradingView.

TradingView is a web-based platform that supports all markets, including stocks, forex, futures, cryptocurrencies, and more. It offers advanced features such as multiple chart types, drawing tools, alerts, backtesting, and more.

TradingView is free to use, but you can also upgrade to a premium plan to access more features and indicators. If you use our link to sign up, you will get a discount and a free trial of TradingView’s premium features and indicators.

The Best Indicators for Day Trading

There are hundreds of indicators that you can use for day trading, but not all of them are equally useful or effective. Some of the best indicators for day trading include the volume profile, auto fib retracements, simple moving averages, exponential moving averages, the Ichimoku clouds, and the VWAP.

Auto Fibonacci Retracements

Fibonacci retracements are a popular tool among traders that use the Fibonacci sequence to identify potential support and resistance levels in the market. The Fibonacci sequence is a series of numbers that starts with 0 and 1, and each subsequent number is the sum of the previous two numbers (e.g., 0, 1, 1, 2, 3, 5, 8…).

The Fibonacci ratios are derived from dividing one number in the sequence by another number that is one or more places to the right (e.g., 1/2 = 0.50, 3/8 = 0.38, 5/13 = 0.38…). The most common Fibonacci ratios used by traders are 23.6%, 38.2%, 50%, 61.8%, and 78.6%.

best indicators for day trading fibonacci

The normal way to draw Fibonacci retracements is to identify a significant high and low point in the price movement (also known as swing points) and connect them with the Fibonacci drawing tool.

However, drawing Fibonacci retracements manually can be tedious and time-consuming, especially for day traders who need to constantly update them as the market changes. That’s why using an auto Fibonacci retracement indicator is extremely useful for day traders. Check out our complete article on Fibonacci retracements for more information.

Volume Profile

Volume profile is another useful indicator for day trading that shows you how much volume was traded at each price level over a given period of time. It helps you understand where supply and demand zones are in the market and how they affect the price movement.

The main parts of the volume profile indicator are the volume point of control (VPOC), the high volume node (HVN), and the low volume node (LVN). The VPOC is the price level where the most volume was traded, indicating a balance between buyers and sellers.

best indicators for day trading volume profile

The HVN is a price level where a lot of volume was traded, indicating a strong interest or activity in the market. The LVN is a price level where little volume was traded, indicating a lack of interest or activity in the market.

The volume profile indicator can help you identify potential support and resistance levels based on the volume distribution. For example, when the price is above an HVN, it acts as support. When the price is below an HVN, it acts as resistance. When the price moves from an LVN to an HVN or vice versa, it indicates a breakout or a reversal.

There are different types of volume profiles that you can use for day trading, depending on your time frame and preference. The most common ones are the session volume profile and the visible range volume profile.

The session volume profile shows you the volume profile for each trading day, while the visible range volume profile shows you the volume profile for everything visible on the chart.

The best way to use the volume profile indicator for day trading is with TradingView, as it offers a built-in volume profile tool that you can easily customize and apply to any market.

For more information on how to use the volume profile indicator on TradingView, you can check out our article on TradingView Volume Profile.

Ichimoku Cloud

The Ichimoku cloud is an all-in-one indicator that provides entry and exit signals, support and resistance levels, and trend identification. It consists of five lines that form a cloud-like shape on the chart:

best indicators for day trading ichimoku
  • The conversion line (Tenkan-sen) is the average of the highest high and the lowest low in the last nine periods.
  • The base line (Kijun-sen) is the average of the highest high and the lowest low in the last 26 periods.
  • The leading span A (Senkou span A) is the average of the conversion line and the base line, plotted 26 periods ahead.
  • The leading span B (Senkou span B) is the average of the highest high and the lowest low in the last 52 periods, plotted 26 periods ahead.
  • The lagging span (Chikou span) is the current closing price, plotted 26 periods behind.

The Ichimoku cloud indicator can help you identify trading opportunities based on various signals and rules. For example:

  • When the conversion line crosses over the base line, it is a buy signal. When it crosses under the base line, it is a sell signal.
  • When the price is above the cloud, it indicates an uptrend. When it is below the cloud, it indicates a downtrend. When it is inside the cloud, it indicates a consolidation or a transition.
  • When the cloud changes color from red to green or vice versa, it indicates a potential trend reversal or continuation.

The Ichimoku cloud indicator works well for day trading because it adapts to different time frames and market conditions. You can use it to scalp, swing, or trend trade, depending on your preference and strategy.

The most common time frames for day trading with Ichimoku are the 1-minute chart for scalping and the 5-minute chart for day trades.

To learn more about how to use Ichimoku cloud for day trading, you can check out this Ichimoku Cloud Thinkorswim Guide.

Volume Weighted Average Price – VWAP

The volume weighted average price (VWAP) is an indicator that shows where “fair value” is for a stock on a particular day. It is calculated by multiplying each trade price by its volume and then dividing by the total volume traded on that day. It creates a single line that moves along with the price action.

best indicators for day trading VWAP

The VWAP indicator can help you identify potential support and resistance levels based on where the price is relative to the VWAP line. For example:

  • When the price is above the VWAP line, it indicates that buyers are in control and that sellers may be willing to sell at lower prices.
  • When the price is below the VWAP line, it indicates that sellers are in control and that buyers may be willing to buy at higher prices.
  • When the price crosses over or under the VWAP line, it indicates a change in momentum or sentiment.

The VWAP indicator is especially useful for day trading because it reflects how much value was traded at each price level on that day. It helps you avoid buying too high or selling too low by showing you where most traders are trading. There is also the anchored VWAP indicator, which is similar but can be used on all timeframes.

Simple Moving Averages – SMA

Simple moving averages (SMA) are indicators that show the average price of a stock over a certain period of time. They help you identify the direction and strength of the trend, as well as potential support and resistance levels.

The most common SMA lines are the 50 and 200-day moving averages (i.e., the 50 and 200 SMA lines on a daily timeframe chart). These lines indicate the long-term trend of the market and are often used by investors and traders to make trading decisions

best indicators for day trading SMA lines

However, for day trading, you may want to use shorter time frames and periods for your SMA lines, as they will be more responsive to the price action and provide more signals.

For example, you can use the 1 or 5-minute time frame and apply the 50 and 200 SMA lines to your chart. These lines will act as support and resistance levels for day trading, as the price will tend to bounce or break from them.

To learn more about how to use simple moving averages for day trading, you can check out our article on TradingView moving averages.

Exponential Moving Averages – EMA

Exponential moving averages (EMA) are similar to simple moving averages, but they give more weight to the recent prices than the older ones. This makes them faster and more sensitive to the price action, which can be useful for day trading.

Exponential moving averages can also act as support and resistance levels for day trading, depending on where the price is relative to them.

best indicators for day trading EMA

For example, you can use the 9 and 26-period EMAs, which are commonly used on the 1 and 5-minute time frame by day traders. These EMAs can help you identify entry and exit points based on their crossover or divergence.

For example:

  • When the 9 EMA crosses over the 26 EMA, it indicates a bullish signal. You can buy when the price is above both EMAs and sell when it crosses below them.
  • When the 9 EMA crosses under the 26 EMA, it indicates a bearish signal. You can sell when the price is below both EMAs and buy when it crosses above them.
  • When the 9 EMA diverges from the 26 EMA, it indicates a strong trend. You can follow the trend until it converges again.
  • When the 9 EMA converges with the 26 EMA, it indicates a weak trend or a consolidation. You can wait for a breakout or a reversal.

To learn more about how to use exponential moving averages for day trading, you can check out our article on TradingView moving averages.

The Best Charting Platform for Using Day Trading Indicators

As we have seen, there are many indicators that you can use for day trading, but not all of them are available or compatible with every charting platform. That’s why we recommend using TradingView as your main charting platform for day trading, as it offers many advantages over other platforms.

TradingView is a web-based platform that supports all markets and every indicator you can imagine with real-time data. It also allows you to customize your charts, create your own indicators, and backtest your strategies. It has a user-friendly interface and a responsive design that works on any device.

TradingView is free to use, but you can also upgrade to a premium plan to access more features and indicators. If you use our link to sign up, you will get a discount and a free trial of TradingView’s premium features and indicators.

We hope this article has helped you learn about some of the best day trading indicators and how to use them on TradingView. Remember that indicators are only tools that can help you analyze the market and make trading decisions, but they are not infallible or magic.

You still need to have a solid trading plan, risk management, discipline, and patience to succeed in day trading. You can also check out our article on the best TradingView indicators for more information.

Anchored VWAP Strategies You Can Use

anchored vwap on a chart

The anchored VWAP is a popular trading indicator that can help you identify support and resistance areas based on various reference points.

anchored vwap on a chart

What is the Anchored VWAP?

The anchored VWAP stands for anchored volume-weighted average price. It is a trading indicator that provides the average price of a security from a specific starting point (the “anchor”), factoring in price and volume. It is used to confirm trends and identify areas of support and resistance on the chart.

The main difference between the anchored VWAP and the traditional VWAP is the traditional VWAP resets daily. On the other hand, the anchored VWAP is always calculated based on where you set the anchor point.

Similar to the regular VWAP, the anchored VWAP takes price and volume into account to determine the average price that which the asset is bought and sold most frequently. This is useful to determine what is considered “fair value” for an asset based on a specific timeframe and anchor point.

Anchored VWAP Strategy – How to Use the Anchored VWAP

It is most common to use the anchored VWAP on longer timeframes like the daily chart. However, you can use it on any time frame, depending on your trading style and objectives.

How to Pick the Anchor Point

You should pick an anchor point at key areas on the chart, such as the highest or lowest point of the price action, a gap, a breakout, a reversal, or any other significant event. The anchor point should mark a change in market sentiment or behavior that you want to measure.

For example, if we look at a chart of SPY, we can see a bottom in October of 2022 and a peak in January 2022. We can set the anchor point at either the bottom or the top. As shown in the image below, when we plot both anchored VWAPs, they are at nearly the same price, making the level more significant in this case.

anchored vwap anchor points

How to Determine Entry and Exits

Depending on each specific situation, the anchored VWAP can allow you to determine trading opportunities in a few ways.

For example, if you set the anchor point to a swing low, and the stock is trading above the anchored VWAP, you can wait for the price to drop back to the anchored VWAP and buy it using the anchored VWAP as a support level.

However, if the price continues lower below the anchored VWAP, this may signal a trend change, and you may want to use a stop loss.

You can also trade continuations with the anchored VWAP. For example, if a stock recently broke above its anchored VWAP, this may signal a trend shift to a new uptrend.

The anchored VWAP will change from resistance to support, and you can buy the stock and set a stop loss below the anchored VWAP.

What Charting Platforms Offer the Anchored VWAP?

The best charting tools that offer the anchored VWAP include TradingView, thinkorswim, and TrendSpider. You can use it with a free account on TradingView, free as a Schwab or TD Ameritrade customer with thinkorswim, or with TrendSpider.

TradingView is a web-based platform that offers advanced charting tools, technical indicators, drawing tools, and social features. You can access thousands of markets and instruments across stocks, forex, crypto, futures, and more. You can get a free trial and a discount when you use our affiliate link to sign up for a new TradingView account.

thinkorswim is a desktop-based platform that offers powerful trading tools, analytics, and education for active traders. You can trade stocks, options, futures, forex, ETFs, and more with thinkorswim.

TrendSpider is an automated technical analysis platform that uses artificial intelligence to scan charts for patterns, trends, indicators, and candlestick formations. You can also backtest your strategies, set alerts, and monitor multiple time frames with TrendSpider.

You can get a free trial of TrendSpider when you use our affiliate link to sign up. Additionally, you can use the TrendSpider discount code FTW25 to get 25% off!

How to Use the Anchored VWAP on TradingView

The anchored VWAP on TradingView is a drawing tool that you can access from the left toolbar. It is the fifth tool from the top on the left part of the chart. Once you click on it, you will see the anchored VWAP tool under the volume-based section.

how to add anchored vwap on tradingview

To use it, you simply click on the candlestick that you want to use as the anchor point. This will plot the anchored VWAP and two additional band multipliers.

These band multipliers are customizable and signify 1, 2, or 3 standard deviations above and below the anchored VWAP.

anchored vwap settings bands

You can remove these by clicking on the anchored VWAP, clicking the settings icon, and unchecking the band multiplier boxes.

anchored vwap tradingview settings icon
Click on the Anchored VWAP, Then the Settings Icon

How to Use the Anchored VWAP on TrendSpider

To use the anchored VWAP on TrendSpider, you must first pull up a chart of your desired instrument and time frame.

trendspider anchored vwap how to add

Then, you can right-click on the candlestick that you want to use as the anchor point and select “create an anchored indicator,” then select anchored VWAP.

You can also adjust the color, style, and thickness of the line by clicking on the three dots that appear when you hover over the anchored VWAP in the indicator list at the top left of your chart.

trendspider anchored vwap settings

You can also add multiple anchored VWAPs from different anchor points to compare them.

How to Use the Anchored VWAP on thinkorswim

To use the anchored VWAP on thinkorswim, you must use a custom indicator that you can download from HaiKhuu Trading. They have an excellent post and a video tutorial on how to install and use the custom anchored VWAP thinkorswim indicator on their blog.

Once you have installed the custom indicator, you can add it to your chart by clicking on “Studies” and then “Edit Studies.” Then, you can search for “AnchoredVWAP” and add it to your chart. You can also adjust the color, style, and thickness of the line from there.

Anchored VWAP vs. VWAP Compared

The traditional VWAP is only used intraday, primarily for day traders, while the anchored VWAP allows you to determine the volume-weighted average for a longer time period than just one day.

The traditional VWAP can help you gauge whether you are getting a good deal on your trades based on the average price of that day. The anchored VWAP can help you gauge whether you are getting a good deal on your trades based on the average price since a certain event or date.

For example, if you want to know whether you are buying or selling at a fair price relative to the market sentiment since the last earnings report, you can use the anchored VWAP with the anchor point set at the earnings date.

If you want to know whether you are buying or selling at a fair price relative to the market sentiment since the beginning of the year, you can use the anchored VWAP with the anchor point set on January 1st.

The traditional VWAP can also be used as a dynamic support and resistance level within a trading day, as prices tend to bounce off or break through it. The anchored VWAP can be used as a dynamic support and resistance level over a longer time frame, as prices tend to bounce off or break through it as well.

Raindrop charts are another great way to view the VWAP for the first and second part of the day.

Anchored VWAP – Bottom Line

The anchored VWAP is a useful trading indicator that can help you identify support and resistance levels based on various reference points. You can use it to confirm trends, spot reversals, gauge market sentiment, and enter or exit trades.

If you want to try out this indicator for yourself, you can get a free trial of either TradingView or TrendSpider using our affiliate link.

When you use our affiliate link, you will also get a discount on their premium plans. You can read our articles on how to get a TradingView free trial and how to get a TrendSpider discount using our coupon code FTW25 at checkout.

Disclaimer: Financial Tech Wiz is an affiliate of TradingView and TrendSpider, and will be compensated if you purchase a TrendSpider or TradingView subscription using our affiliate link or discount code.

Trendspider Coupon Code 25% Off! – FTW25 (2024)

trendspider coupon code

Are you looking for a way to save money on your TrendSpider subscription? If so, you’re in luck.

I have a special TrendSpider coupon code that will give you a 25% discount on any plan.

All you have to do is use the code FTW25 when you sign up or upgrade your account.

This is an exclusive offer for my readers, so don’t miss this opportunity to get the best deal on TrendSpider.

trendspider coupon code

How to Get a TrendSpider Discount

TrendSpider is a powerful and innovative platform that helps traders with technical analysis, charting, and automation.

It offers a range of features and tools that can enhance your trading performance and efficiency. However, TrendSpider is not cheap.

Depending on the plan you choose, you can pay anywhere from $39 to $179 per month.

That’s why I’m happy to share with you my TrendSpider discount code that will save you 25% on any plan.

To get this discount, all you have to do is follow these simple steps:

  1. Click on this link to go to the TrendSpider website.
  2. Choose the plan that suits your needs and click on “Start Free Trial.”
  3. Fill in your personal details, and when prompted, enter the coupon code FTW25 in the box.
  4. Complete your registration and enjoy your 7-day free trial and discounted membership!

That’s it. You’ve just secured your TrendSpider discount for life. As long as you keep your subscription active, you’ll pay 25% less than the regular price.

Why Use TrendSpider for Technical Analysis?

TrendSpider is not just another charting platform. It’s a smart and automated system that can help you with technical analysis, market scanning, backtesting, and more. Here are some of the reasons why you should use TrendSpider for your trading:

  • Volume by price: TrendSpider allows you to see the volume distribution at different price levels, which can help you identify support and resistance zones, breakouts, and reversals.
  • Automated analysis: TrendSpider uses algorithms to detect trendlines, patterns, Fibonacci retracements, candlestick formations, and other technical indicators automatically. You can also customize the settings to match your own style and preferences.
  • Real-time data: TrendSpider includes real-time data for stocks, ETFs, forex, crypto, and futures in all plans. You don’t have to pay extra for data feeds or worry about delays or inaccuracies.
  • Dynamic price alerts: TrendSpider lets you set alerts based on various criteria, such as price movements, technical indicators, patterns, or even custom scripts. You can receive notifications via email, SMS, or browser when your conditions are met.
  • Automated trading bots: TrendSpider enables you to create and run trading bots that can execute your trades based on your rules. You can backtest your strategies, optimize your parameters, and monitor your performance.

These are just some of the benefits of using TrendSpider for technical analysis. There are many more features and tools that you can explore and use to improve your trading results.

TrendSpider Discount Code – Bottom Line

TrendSpider is a must-have platform for any serious trader who wants to take their technical analysis to the next level. It offers a unique combination of automation, intelligence, and customization that can help you find and exploit trading opportunities faster and easier.

If you want to get started with TrendSpider today, don’t forget to use my coupon code FTW25 to get a 25% discount on any plan.

You can also try TrendSpider for free for 7 days and see how it works for yourself. Just click here to claim your free trial and start using TrendSpider today.

Check out our other articles about TrendSpider, such as TrendSpider vs. TradingView and TrendSpider free trial.

Disclaimer: Financial Tech Wiz is an affiliate of Trendspider and will be compensated if you click our affiliate link or use the FTW25 coupon code and purchase a TrendSpider subscription.

How You Can Get a Trendspider Free Trial (2024)

trendspider free trial

Trendspider is a smart trading software that helps you find, plan, and time your trades with greater efficiency and precision.

It offers a unique set of integrated tools, such as smart charts, real-time scanners, robust backtesting, dynamic alerts, automated analysis, trading bots, and more.

trendspider free trial

Does Trendspider Offer Free Trials?

The good news is that Trendspider does offer a free trial that lasts for 7 days.

During this period, you can access all the features of the platform, depending on the plan that you choose.

You can also cancel your subscription at any time before the trial ends without being charged.

How to Get a Trendspider Free Trial

To get a Trendspider free trial, you can start by clicking on my affiliate link to go to the Trendspider website.

trendspider banner

There, you will see three subscription plans: Essential, Elite, and Elite Plus. Each plan has different features and prices, so you can compare them and pick the one that suits your needs and budget.

Next, you can select between paying monthly or yearly. You can get a discount when you pay annually, depending on the current Trendspider pricing.

After that, you will need to enter your information to create an account, such as your name, email address, password, and billing details. You will also need to agree to the terms of service and privacy policy.

trendspider contact info

Once you have completed these steps, you will be able to access the Trendspider platform and start using its features for free for 7 days.

You will also receive an email confirmation with your login details and instructions on how to use the platform.

Can I Use Trendspider For Free Without an Account?

If you are not ready to sign up for a free trial yet, you might be wondering if you can use Trendspider for free without an account.

The answer is that you cannot use the Trendspider charts or other features without an account. However, they do offer some free watchlists that you can access from their website.

trendspider free watchlists

These watchlists include insider buying, 52-week highs and lows, social sentiment, and more. You can use these watchlists to get some insights into the market trends and opportunities.

FAQ

How long is the Trendspider free trial?

The Trendspider free trial lasts for 7 days from the day that you sign up. You can cancel your subscription at any time before the trial ends without being charged.

Can I access all the features during the free trial?

Yes, you can access all the features of the platform during the free trial, depending on the plan that you choose. For example, if you choose the Elite Plus plan, you can access all the features of the Essential and Elite plans.

Is Trendspider better than TradingView?

Both TradingView and Trendspider are excellent platforms, and you can check out my article on Trendspider vs. TradingView for an in-depth comparison.

If you have made it this far, learn how to use our TrendSpider coupon code to get a discount on your subscription!

Disclaimer: Financial Tech Wiz is an affiliate of TrendSpider and will be compensated if you use our affiliate links to purchase a TrendSpider subscription.

The Best Indicators for Options Trading

best indicators for day trading volume profile

Learn how technical analysis can benefit your options trading.

Magic options trading chart indicators do NOT exist

Technical analysis for options trading is a somewhat controversial topic, as many hedge funds have proved that it is tough to time the market accurately.

There are no magic indicators out there that will be able to give you perfect buy and sell signals consistently. However, this does not mean there is no merit in studying options trading chart indicators.

There is a wide range of technical indicators, such as moving averages, volume profile, fibonacci retracements, pivot points, and much more.

Technical analysis provides context for options trading

To become a successful options trader, you are not required to learn any of this, but technical indicators can be a great way to provide context to what is happening in the market.

If you simply look at a candle chart of two different stocks with no indicators, it could be challenging to determine how the market is pricing these stocks.

Keep it simple

Using a common indicator such as the 200-day moving average, you can compare different stocks based on this line alone.

Let’s say you notice a stock index like the Nasdaq is trading below its 200-day moving average and an oil ETF is trading above its 200-day moving average.

You can conclude that stocks are not doing as well as oil, providing that context.

If you are looking for universal charting software, I highly recommend Tradingview. Since Tradingview is not tied to a specific broker, you can always rely on it if you decide to switch brokers. You can try Tradingview out for 30 days free with my affiliate link.

Best Indicators for Options Trading

1- Moving Averages

There are two types of moving averages: a simple moving average (SMA) and the exponential moving average (EMA). They are one of the best indicators for options trading because they provide support and resistance levels.

Both require a length input, which determines how far back in time the indicator covers. One of the most common SMAs used is the 200 SMA on a daily timeframe.

When a 200 SMA line is plotted on a daily chart (each candle represents one day), this is also known as the 200-day moving average.

best indicators for options trading moving averages
$GLD with moving averages and volume profile plotted.

When a stock is trading above this 200-day moving average, it is considered to be in an uptrend; if it is trading below this line, the stock is generally considered to be down trending.

2- Volume Profile

The volume profile is not as well-known as other indicators, but it is one of the best indicators for options trading.

Usually, we can view the amount of volume traded on a stock per day as a vertical bar. This is great, but it does not tell us what price the most volume was occurring at.

The volume profile will show you volume by price and is plotted horizontally on the chart.

You will notice that there is a lot more volume occurring at certain prices than others.

This price is known as a high volume node or an area of value. It is the price in which shares have traded hands most times, so it is viewed as an area of value to both the buyers and the sellers.

best indicators for options trading volume profile
TradingView High and Volume Volume Nodes (HVN/LVN)

From this information, we can gather that these high-value areas are where most people’s cost basis will be, whether short or long.

The price of a stock generally tends to revert to these points of value often, so people often try to fade the extremes of the value area.

For example, when the price falls below the high volume area to another area with a lower volume, they will buy here to fade the shorts and attempt to ride the shares back up to the value area. This is just one strategy, and this indicator has many nuances.

3- Ichimoku Cloud

Ichimoku cloud trading strategies rely on stocks to be trending up or down. The Ichimoku cloud will be green when a stock is trending up, as you can see in the chart of $XLE below.

When the conversion line crosses over the tenkan-sen line, this is called a TK-crossover, and it is a buy signal.  This happened on the weekly chart of $XLE in October, above a green cloud, indicating a strong buy.

best indicators for options trading ichimoku
Chart from TradingView

Technical Analysis for Options Trading: Bottom Line

Trading with technical analysis should come second to developing an options strategy that is expected to have a positive expectancy in the long run.

It can be advantageous to find areas of value and determine that one price might be a better spot to buy than another. Still, this can become useless information without a strategy to manage your risk and take profits.

What I mean by this is that support levels are only valid until they are broken, and you are left with an unrealized loss. One way to combine technical analysis with an options strategy is to go long at support areas and set a stop loss below this area in case it breaks.

If you put the risk to reward in your favor each time and have a strategy of where to cut losses and take profits, then technical analysis can be a fantastic tool to improve your win rate and profitability.

QQQ vs. SPY | Which is Best For You?

QQQ-vs-spy

If you are looking for a way to invest in the U.S. stock market, you might have come across two of the most popular and liquid exchange-traded funds (ETFs): QQQ and SPY.

These ETFs offer the best liquidity for active traders, as they have high trading volumes and low bid-ask spreads.

But what are the differences between them, and which one is best for you?

QQQ-vs-spy

Overview of QQQ and SPY

QQQ and SPY are both index funds, which means they track the performance of a specific group of stocks. However, they track different indexes, which have different compositions and characteristics.

SPY tracks the S&P 500 index, which is the most common benchmark of the U.S. stock market. The S&P 500 index consists of 500 large-cap companies from various sectors, such as technology, health care, consumer discretionary, financials, and more.

The S&P 500 index is weighted by market capitalization, which means that larger companies have a bigger impact on the index performance.

QQQ tracks the Nasdaq 100 index, which holds only 100 stocks. The Nasdaq 100 index is also weighted by market capitalization, but it has a different sector allocation than the S&P 500 index.

The Nasdaq 100 index is heavily skewed towards technology companies, which make up about 50% of the index. The Nasdaq 100 index also excludes financial companies, which are more prevalent in the S&P 500 index.

QQQ vs. SPY Dividend Yield

ETFDividend Yield
SPY1.53%
QQQ0.59%

One of the factors that investors consider when choosing an ETF is the dividend yield, which is the annual dividend payment divided by the share price. Dividends are a way for companies to distribute their profits to shareholders, and they can provide a steady income stream for investors.

The QQQ dividend yield is 0.59%, while the SPY dividend yield is 1.53%. This means that SPY pays more dividends than QQQ on average.

This is partly because SPY has more mature and stable companies that tend to pay higher dividends, while QQQ has more growth-oriented and innovative companies that tend to reinvest their earnings.

QQQ vs. SPY Expense Ratio

ETFExpense Ratio
SPY0.09%
QQQ0.20%

Another factor that investors consider when choosing an ETF is the expense ratio, which is the annual fee that the fund charges to cover its operating costs. The expense ratio reduces the net return of the fund, so lower expense ratios are preferable.

The QQQ expense ratio is 0.20%, while the SPY expense ratio is 0.09%. This means that SPY charges less fees than QQQ on average. This is partly because SPY has a simpler structure and lower management costs than QQQ, which has more complex holdings and higher turnover rates.

However, both QQQ and SPY have relatively low expense ratios compared to other ETFs in the market. For example, some Vanguard ETFs have even lower expense ratios, such as VOO (0.03%), VTI (0.03%), and VUG (0.04%).

qqq-vs-spy-total-return

QQQ vs. SPY Total Return Performance

ETF5-Year Total Return
SPY59%
QQQ104%

One of the most important factors that investors consider when choosing an ETF is the total return performance, which is the change in share price plus the dividends received over a period of time. The total return performance reflects how well the fund has performed in terms of capital appreciation and income generation.

The QQQ 5-year total return is 104%, while SPY is 59%. This means that QQQ has outperformed SPY by a wide margin over the past five years. This is mainly because QQQ has benefited from the strong performance of its top holdings, such as Apple, Microsoft, Amazon, Tesla, and Google, which have been driving the technology sector to new heights due to their innovation and growth potential.

However, past performance does not guarantee future results, and QQQ may also face higher volatility and risk than SPY due to its concentration in a few sectors and companies.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

tradingview plus icon

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

tradingview adj icon

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

QQQ vs. SPY Holdings Comparison

Another way to compare QQQ and SPY is to look at their holdings, which are the individual stocks that make up each fund. By looking at their holdings, you can get a better sense of their diversification, exposure, and risk profile.

Here are some key facts about QQQ and SPY holdings:

  • QQQ has 100 holdings, while SPY has 500 holdings on average.
  • QQQ has no exposure to the financial sector, while SPY has significant exposure to the financial sector.
  • SPY is considered the benchmark for the general U.S. stock market.

Other ETF Comparisons

If you are interested in comparing other ETFs, you can check out our other articles, such as:

QQQ vs. SPY | Bottom Line

QQQ and SPY are both excellent ETFs that offer exposure to the U.S. stock market, but they have different characteristics and performance. QQQ is more suitable for investors who are looking for higher growth potential and are willing to accept higher risk and volatility. SPY is more suitable for investors who are looking for more stability and income and are more diversified across sectors and companies.

Ultimately, the best ETF for you depends on your personal goals, risk tolerance, time horizon, and investment strategy. You can also combine QQQ and SPY in your portfolio to achieve a balanced mix of growth and value.

To help you make informed decisions and track your investments, we recommend you to sign up for TradingView, which is a powerful platform that allows you to easily track all markets from a single platform. You can get a TradingView free trial when you use our affiliate link.

VTI vs. VOO | Which is Best For You?

voo vs vti

If you are looking for a simple and effective way to invest in the stock market, you might have come across two popular exchange-traded funds (ETFs) from Vanguard: VTI and VOO.

Both of these ETFs provide exposure to the overall stock market, but they have some key differences that you should be aware of before choosing one over the other.

voo vs vti

Overview of VTI and VOO

VTI and VOO are both ETFs from Vanguard, one of the largest and most reputable investment companies in the world. ETFs are funds that track a basket of securities, such as stocks or bonds, and trade on an exchange like stocks.

VTI stands for Vanguard Total Stock Market ETF, and it aims to track the performance of the CRSP US Total Market Index, which covers the entire US equity market. VTI holds over 3,800 stocks across all market capitalizations, sectors, and styles, making it one of the most diversified ETFs available.

VOO stands for Vanguard S&P 500 ETF, and it aims to track the performance of the S&P 500 Index, which is widely regarded as the best representation of the US large-cap stock market. VOO holds around 500 stocks that are selected by the S&P Dow Jones Indices based on their size, liquidity, profitability, and other factors.

VTI vs. VOO Dividend Yield

ETFDividend Yield
VTI1.56%
VOO1.61%

Dividends are payments that companies make to their shareholders as a way of distributing their profits. Dividend yield is a measure of how much a company pays in dividends relative to its share price.

Both VTI and VOO pay dividends quarterly to their investors. The dividend yield for VTI is around 1.56%, while the dividend yield for VOO is around 1.61%. This means that if you invested $10,000 in VTI or VOO at that date, you would receive about $156 or $161 in dividends per year, respectively.

The difference in dividend yield between VTI and VOO is not very significant and is not a huge deciding factor between these ETFs.

VTI vs. VOO Expense Ratio

ETFExpense Ratio
VTI0.03%
VOO0.03%

VTI and VOO both have an expense ratio of 0.03%, which is among the lowest in the industry. This means that both ETFs are very cost-efficient and do not erode your returns significantly due to fees.

The expense ratio is a measure of how much an ETF charges its investors for managing the fund. It is expressed as a percentage of the fund’s assets per year. For example, an expense ratio of 0.03% means that the fund charges $3 per year for every $10,000 invested.

The expense ratio is one of the most important factors to consider when choosing an ETF because it directly affects your returns over time. The lower the expense ratio, the more money you get to keep from your investment.

VTI vs. VOO Total Return Performance

ETF5-Year Return of $10,000
VTI$15,600
VOO$16,100

According to TradingView, which is a platform that allows you to compare several stocks and ETFs on a single chart with various indicators and tools, VTI has generated a total return of 56% over the past five years, while VOO has generated a total return of 61% in the same time period.

vti vs voo total return

This means that if you invested $10,000 in VTI or VOO five years ago, you would have $15,600 or $16,100 today, respectively.

The difference in total return performance between VTI and VOO is mainly due to the fact that VOO holds fewer companies than VTI, and those companies have performed better than the average of the entire market.

VOO is more concentrated in the large-cap segment of the market, which has outperformed the small-cap and mid-cap segments in recent years. VOO also has a higher exposure to the technology sector, which has been one of the best-performing sectors in the past decade.

However, it is important to note that past performance is not a guarantee of future results and that the difference in total return performance between VTI and VOO may change over time depending on market conditions and trends.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

tradingview plus icon

Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

tradingview adj icon

As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

VTI vs. VOO Holdings

VTI is more diversified than VOO since it is a total stock market ETF, while VOO is an S&P 500 ETF. VOO holds around 500 companies, while VTI holds over 3,800 stocks. This means that VTI covers more of the market than VOO and has a lower exposure to any single company or sector.

Another important note is that VOO is heavily allocated to the tech sector, which some investors may consider too risky. Therefore, if you are more risk-averse, VTI is likely the better option.

An ETF’s holdings are the individual securities that an ETF owns and tracks. Understanding the companies the ETF owns is one of the most important factors to consider when choosing an ETF because it determines the risk and return profile of the fund.

If you are interested in comparing other ETFs besides VTI and VOO, you can check out our other articles that cover various aspects of different ETFs, such as:

  • VOO vs. SPY: A comparison of two S&P 500 ETFs from Vanguard and SPDR.
  • VUG vs. QQQ: A comparison of two growth-oriented ETFs from Vanguard and Invesco.
  • VOO vs. QQQ: A comparison of two large-cap ETFs from Vanguard and Invesco that have different sector exposures.
  • FXAIX vs. VOO: A comparison of an S&P 500 index fund from Fidelity and an S&P 500 ETF from Vanguard.
  • VOO vs. SCHD: A comparison of two dividend-focused ETFs from Vanguard and Schwab.
  • QQQ vs. SPY: Which is the best ETF for your portfolio?
  • VFIAX vs. VOO: Which is best for you?
  • VTSAX vs. VFIAX

VTI vs. VOO | Bottom Line

VTI and VOO are both excellent ETFs from Vanguard that provide exposure to the overall stock market, but they have some key differences that you should be aware of before choosing one over the other.

VTI is a total stock market ETF that holds over 3,800 stocks across all market capitalizations, sectors, and styles, making it one of the most diversified ETFs available. VTI has a lower dividend yield, a lower exposure to large-cap growth stocks, and a higher exposure to small-cap and mid-cap stocks than VOO.

VOO is an S&P 500 ETF that holds around 500 stocks that are selected by the S&P Dow Jones Indices based on their size, liquidity, profitability, and other factors. VOO has a higher dividend yield, a higher exposure to large-cap growth stocks, and a lower exposure to small-cap and mid-cap stocks than VTI.

Both ETFs have the same expense ratio of 0.03%, which is among the lowest in the industry and have performed very well over the past five years, generating impressive total returns for their investors.

The choice between VTI and VOO depends on your personal preference, risk tolerance, investment horizon, and portfolio allocation. You may also consider holding both ETFs in your portfolio to get the best of both worlds.

VUG vs. VOO | Which is Best For You?

vug vs voo

If you are looking for a low-cost way to invest in the US stock market, you might have come across two popular exchange-traded funds (ETFs) from Vanguard: VOO and VUG.

Both of these funds offer exposure to large-cap US companies, but they have different investment objectives and strategies.

In this article, we will compare VUG vs. VOO in terms of their dividend yield, expense ratio, total return performance, holdings, and more. By the end of this article, you should have a better idea of which fund is best suited for your portfolio and risk profile.

vug vs voo

Overview of VUG and VOO

VOO and VUG are both ETFs that are managed by Vanguard, one of the largest and most reputable investment companies in the world. VOO stands for Vanguard S&P 500 ETF, while VUG stands for Vanguard Growth ETF.

VOO tracks the performance of the S&P 500 Index, which is widely regarded as the best representation of the US stock market. The S&P 500 Index consists of 500 of the largest and most influential companies in the US across various sectors and industries.

VOO aims to replicate the index by holding all or a representative sample of its constituents with similar weights and proportions. VOO is great for investors who want to diversify their portfolio into 500 of the best US companies and benefit from their long-term growth potential.

VUG tracks the performance of the CRSP US Large Cap Growth Index, which is a subset of the CRSP US Large Cap Index. The CRSP US Large Cap Growth Index consists of large-cap US companies that exhibit above-average growth characteristics, such as high earnings growth, high sales growth, high return on equity, and high expected earnings growth.

VUG aims to replicate the index by holding all or a representative sample of its constituents with similar weights and proportions. VUG is best suited for investors who are looking for higher returns but also higher volatility, as growth stocks tend to outperform value stocks in bullish markets but underperform in bearish markets.

VUG vs. VOO Total Return Performance

Perhaps the most important factor to consider when comparing VUG and VOO is their total return performance. Total return is the change in value of an investment over a given period of time, including any dividends or capital gains distributions, expressed as a percentage. Total return is an indicator of how much an investment has grown or shrunk over time.

VUG has a total return (including dividends) of around 76% over the past five years, while VOO has a total return of around 60%. This means that VUG has outperformed VOO by around 16 percentage points in the past five years.

vug vs voo total return
VUG vs. VOO on TradingView

The reason why VUG has outperformed VOO is that the past five years have been extremely bullish for tech stocks, which make up more than half of VUG’s holdings. Tech stocks have benefited from the rapid growth of e-commerce, cloud computing, social media, artificial intelligence, and other disruptive technologies that have changed the way we live and work.

VOO, on the other hand, has a more balanced portfolio that includes companies from various sectors and industries, such as health care, consumer staples, financials, and energy.

However, this does not mean that VUG will always outperform VOO in the future. VOO will likely perform better than VUG in sideways and down markets, as it holds more companies that are less sensitive to economic cycles and market fluctuations. VOO also offers more diversification and lower risk than VUG, as it holds more than twice the amount of companies.

The chart above compares the total return performance of VUG and VOO over the past five years using data from TradingView. TradingView is a powerful platform that allows you to easily compare several ETFs on a single chart and even adjust the data for dividends so you can see the total return and not just the price return.

You can get a TradingView free trial when you use our link to sign up, but you can compare ETFs with a free account as well.

VUG vs. VOO Dividend Yield

​ETFDividend Yield
VUG0.56%
VOO1.48%

One of the main differences between VUG and VOO is their dividend yield. Dividend yield is the ratio of annual dividend payments to the current share price, expressed as a percentage. Dividend yield is an indicator of how much income an investor can expect to receive from holding a fund.

VOO has a dividend yield of 1.48%, which means that for every $100 invested in VOO, an investor can expect to receive $1.48 in dividends per year. VUG has a dividend yield of 0.56%, which means that for every $100 invested in VUG, an investor can expect to receive $0.56 in dividends per year.

The reason why VOO has a higher dividend yield than VUG is that VOO invests in more mature and stable companies that tend to pay higher dividends to their shareholders, while VUG invests in more growth-oriented companies that tend to reinvest their earnings back into their business for future expansion and innovation.

VUG vs. VOO Expense Ratios

ETFDividend Yield
VUG0.04%
VOO0.03%

Another important factor to consider when comparing VUG and VOO is their expense ratio. The expense ratio is the annual fee that a fund charges its investors for managing their assets, expressed as a percentage of the fund’s net assets. The expense ratio is an indicator of how much a fund costs to operate and maintain.

VOO has an expense ratio of 0.03%, which means that for every $100 invested in VOO, an investor pays $0.03 in fees per year. VUG has an expense ratio of 0.04%, which means that for every $100 invested in VUG, an investor pays $0.04 in fees per year.

Both VOO and VUG have very low expense ratios compared to the average expense ratio of US equity ETFs, which is around 0.44%. This means that both funds are very efficient and cost-effective ways to invest in the US stock market. Keeping expenses low is one of the reasons why Vanguard is so successful.

VUG vs. VOO Holdings

Another factor to consider when comparing VUG and VOO is their holdings. Holdings are the individual stocks that make up a fund’s portfolio. Holdings can reveal a lot about a fund’s investment strategy, risk profile, sector exposure, and diversification.

VOO is more diversified than VUG, as it holds 508 companies, while VUG holds 234 companies. This means that VOO has a lower concentration risk than VUG, as it spreads its assets across more companies and reduces the impact of any single company on its performance.

More than half of VUG’s holdings are within the technology sector, while VOO has around 28% allocated to technology. This means that VUG has a higher sector risk than VOO, as it depends more on the performance of one sector and is more vulnerable to any sector-specific shocks or trends.

Comparing ETFs With TradingView

When comparing ETFs, it is crucial that you are comparing the total return to include dividend payments. TradingView allows you to compare several stocks and ETFs at once on a single chart adjusted for dividends.

You can simply sign up for a free TradingView account and type the stock ticker you want to compare. Next, click the plus sign next to the ticker at the top left of the chart to add symbols to compare.

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Finally, ensure you click the ‘ADJ’ at the bottom to adjust the returns for dividends!

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As you can see in the TradingView chart below, you can compare multiple funds and ETFs on a single chart, making your research much easier. Feel free to compare any ETFs you’d like using the widget.

Explore Other ETF Comparisons

If you are interested in comparing other ETFs, you can check out our other articles such as:

VUG vs. VOO | Bottom Line

VUG and VOO are both excellent ETFs that offer exposure to large-cap US companies, but they have different investment objectives and strategies.

VUG is best suited for investors who are looking for higher returns but also higher volatility, as it invests in growth stocks that tend to outperform value stocks in bullish markets but underperform in bearish markets.

VOO is great for investors who want to diversify their portfolio into 500 of the best US companies and benefit from their long-term growth potential and stable dividends.

Both VUG and VOO have very low expense ratios, which makes them very efficient and cost-effective ways to invest in the US stock market. However, they also have different dividend yields, total return performance, holdings, and sector exposure, which can affect their risk-reward profile and suitability for different investors.

Ultimately, the choice between VUG and VOO depends on your personal preference, risk tolerance, time horizon, and investment goals. You can also combine both funds in your portfolio to achieve a balance between growth and value or diversify into other ETFs that cover different market segments or regions.

If you want to easily track and compare all these ETFs and more, you can sign up for a TradingView free trial using our affiliate link.

TradingView is a powerful platform that allows you to access real-time data, charts, indicators, tools, and community insights for all markets from a single platform.

You can also create your own custom watchlists, alerts, strategies, and more. TradingView is compatible with any device and browser, so you can always stay on top of your investments wherever you are.