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Vanguard Total Stock Market Index Fund ETF (VTI) - A Low-Cost Way to Invest in the US Stock Market

 
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VTI is a popular ETF that provides broad exposure to the US stock market with a low expense ratio. This article will explore what VTI is, how it works, and why it's a great option for investors looking for low-cost, diversified exposure to the US stock market.

description: a chart showing the performance of vti over the past year, with a dotted line indicating the s&p 500 index. the chart shows that vti has outperformed the s&p 500 over the past year, demonstrating the benefits of its diversified exposure to the us stock market.

Vanguard Total Stock Market Index Fund ETF (VTI) is an exchange-traded fund that provides investors with exposure to the entire US stock market. The fund tracks the performance of the CRSP US Total Market Index, which includes large-cap, mid-cap, and small-cap stocks. With over 3,900 stocks in its portfolio, VTI offers investors a highly diversified portfolio that represents the broader US market.

If you're looking for a low-cost total stock market index fund, the popular Vanguard funds VTI and VTSAX are likely to make your short list for consideration. Both funds are designed to provide broad exposure to the US stock market, but there are some differences to take note of. VTSAX is a mutual fund, while VTI is an ETF. VTSAX has a slightly lower expense ratio than VTI (0.04% vs. 0.03%), but VTI offers investors the flexibility to trade throughout the day and to buy and sell shares in any size.

In the realm of investing, “VTI Stock,” also known as Vanguard's Total Stock Market ETF, is one of the most common terms you'll encounter. VTI has become a popular choice among investors who want to invest in the US stock market without having to pick individual stocks. With VTI, investors get exposure to the entire US stock market, which helps to reduce the risk of individual stock picking.

Exchange-traded funds (ETFs) allow you to invest in many companies at once and can be purchased through online brokers. VTI and VOO — two Vanguard ETFs — are often mentioned in the same breath. However, there are some key differences between the two. VOO tracks the S&P 500 Index, which includes only large-cap stocks, while VTI tracks the CRSP US Total Market Index, which includes large-cap, mid-cap, and small-cap stocks. VTI is also slightly more diversified than VOO, with over 3,900 stocks in its portfolio compared to VOO's 500.

Vanguard Total Stock Market ETF has a portfolio of about 3945 stocks, and this provides a good representation of the broader U.S. market. VTI's top holdings include Apple, Microsoft, Amazon, Facebook, and Alphabet (Google). These companies represent a significant portion of the US stock market, and their performance will have a significant impact on the performance of the overall US stock market.

Most of the major asset classes fell in May. The upside exceptions: U.S. stocks and cash. Otherwise, red ink prevailed last month, with most of the major asset classes declining. VTI, however, held up relatively well, posting a modest gain of 0.43% for the month. This is a testament to the diversification provided by the fund's broad exposure to the US stock market.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Total Stock Market ETF (VTI). Investors poured $1.52 billion into VTI during the week, bringing the fund's total assets under management to $250.5 billion.

In April 2023 Edition, this list of the best exchange-traded funds (ETFs) to buy for 2023 features diversified funds. We've further fine-tuned the list to include only the most cost-effective funds, which means the best ETFs to buy for 2023 are those that offer a combination of low expense ratios and good performance. VTI is among the top ETFs on the list, thanks to its low expense ratio and broad exposure to the US stock market.

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