The Vanguard Total Stock Market ETF (AMEX:VTI) is a great option for those looking to diversify their portfolio and invest in the Stock market. VTI is the ETF share class of the Vanguard Total Stock Market Index, which is composed of Stock of about 4,028 companies. This index is designed to track the performance of the total U.S. Stock market, covering both large and small-cap Stock.
Stock and bonds, which are not supposed to move in tandem, have been doing so in recent weeks. This is partially due to many invest positioning themselves into a more defensive portfolio consisting of the Vanguard Total Stock Market ETF (AMEX: VTI) and the iShares Core US Aggregate Bond ETF (ticker: AGG). In trading on Tuesday, shares of the Vanguard Total Stock Market ETF (AMEX: VTI) crossed above their 200 day moving average of $202.17, changing hands as high as $202.50 per share.
Exchange traded funds (ETFs) trade just like Stock, but instead of ''shares'' invest are actually buying and selling ''units''. These ''units'' represent a certain amount of the fund, usually $50 or $100. This makes them a great option for those looking to invest in the Stock market without taking on the risk of buying individual Stock.
Vanguard ETFs ushered in a new era of easy diversification and low-cost invest. Among the most popular Vanguard ETFs are the Vanguard Total Stock Market ETF (AMEX: VTI), the Vanguard S&P 500 ETF (AMEX: VOO), the Vanguard FTSE All-World ex-US ETF (AMEX: VEU), and the Vanguard Total Bond Market ETF (NASDAQ: BND).
VTI is a great option for those looking for international exposure. Among index international-Stock funds, we like the Gold-rated Vanguard Total International Stock ETF (NASDAQ:VXUS) and Vanguard FTSE All-World ex-US ETF (AMEX:VEU). Both of these funds offer a low-cost, diversified portfolio of non-U.S. Stock and bonds.
Yes, we are talking about Vanguard Total Stock Market ETF (AMEX:VTI), which gives you exposure to the entire US equity market, including small, mid, and large cap Stock. It is one of the most diversified funds available, with exposure to over 4,000 Stock.
The VTI fund has returned 7.85% per annum since its inception in 2001, significantly outperforming the S&P 500 which has only returned 4.95% per annum over the same period. With the current market volatility, the VTI fund is a great option for those looking to minimize their risk while still taking advantage of the Stock market.
The VTI fund is also extremely popular, with assets under management of $39 billion as of December 16, with the iShares Core S&P 500 ETF (IVV) and the Vanguard Total Stock Market ETF (AMEX:VTI) not far behind. This is a testament to the fund's long-term performance and its ability to help invest diversify their portfolios.
Overall, the Vanguard Total Stock Market ETF (AMEX:VTI) is a great option for those looking to diversify their portfolio and invest in the Stock market. The fund offers low-cost invest, easy diversification, and a long-term performance that is hard to beat.
