Investing in Vanguard Total Stock Market ETF (VTI)

Vanguard Total Stock Market ETF (AMEX:VTI) is the ETF share class of the Vanguard Total Stock Market Index Fund, which is the largest total Stock market fund in the world. The VTI fund has returned 7.85% per annum since its inception in 2001, with a minimal index tracking error of 0.02% per annum. The IMF projects that VTI will maintain its position as the largest total Stock market fund in the world for the foreseeable future. A great way to buy the entire investable U.S. market is VTI, which tracks the CRSP Total Market Index. This ETF holds more than 4,000 large-, mid- and small-cap securities from across 11 major sectors in the US Stock market.

Looking at the chart above, VTI's low point in its 52 week range is $174.84 per share, with $244.06 as the 52 week high point — that compares to a previous 52 week low of $164.81 and a high of $239.12. VTI has a market capitalization of $577.6 billion, making it the largest ETF in the world. Furthermore, the fund has an expense ratio of 0.03%, making it one of the most cost-effective total Stock market ETFs available.

A hypothetical 60/40 portfolio consisting of the Vanguard Total Stock Market ETF (AMEX: VTI) and the Vanguard Total Bond Market ETF (NASDAQ:BND) has been the most popular portfolio for retirement savers for the past decade. This portfolio provides a diversified portfolio at a very low cost and with minimal volatility. Furthermore, VTI is a great option for long-term investors looking to diversify their portfolios and capitalize on the market's long-term growth potential.

For investors looking for a more aggressive option, VFMF (Vanguard Financials ETF) may be a better choice. VFMF has a higher expense ratio (0.1%) and lower liquidity than VTI, but it also provides exposure to the financials sector, which is often overlooked by index investors. However, I'm confident that VFMF's earnings growth will be above VTI's, so from a growth-at-a-reasonable-price perspective, VFMF looks excellent for long-term investors.

When it comes to investing in VTI, there are several points to consider. First, investors should make sure that VTI is the best ETF for their goals, as there are plenty of other ETFs that offer similar exposure. Second, investors should understand VTI's fees and expenses, as these can have a significant impact on performance. Third, investors should understand the risks associated with investing in VTI, such as market risk, liquidity risk and concentration risk.

Finally, investors should understand the tax implications of investing in VTI. This ETF is subject to U.S. taxes, so investors should be aware of the tax implications before investing. Furthermore, investors should understand the differences between VTI and other ETFs, such as sector-specific ETFs and actively managed ETFs.