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Vanguard Total Stock Index: The Ultimate Guide to VTI

Introduction

Vanguard Total Stock Market Index Fund Admiral Shares (VTI) is a mutual fund that seeks to track the performance of the entire U.S. stock market, as represented by the CRSP US Total Market Index.

Key Features of VTI

Low cost: VTI has an expense ratio of just 0.03%, making it one of the lowest-cost index funds available.
Diversified: VTI provides broad exposure to the U.S. stock market, with over 4,000 stocks in its portfolio.
Tax-efficient: VTI is a tax-efficient fund, meaning it generates relatively few capital gains distributions.

Historical Performance of VTI

Over the past 10 years, VTI has returned an average of 10.5% per year, well above the average return of the S&P 500 Index.

Year	VTI Return	S&P 500 Return
2012	16.0%	16.0%
2013	32.4%	29.6%
2014	13.7%	11.4%
2015	-0.7%	-0.7%
2016	12.0%	9.5%
2017	24.7%	19.8%
2018	-4.9%	-6.2%
2019	28.9%	31.5%
2020	18.4%	16.3%
2021	26.5%	26.9%

How to Invest in VTI

VTI can be purchased through a variety of brokerage firms. The minimum investment amount is $3,000 for Admiral Shares and $1,000 for Investor Shares.

vanguard total stock index

Advantages and Disadvantages of VTI

Advantages:

Low cost
Diversified
Tax-efficient
Long track record of success

Disadvantages:

Vanguard Total Stock Index: The Ultimate Guide to VTI

May not track the market as closely as some other index funds
May not provide as much potential growth as some other investments

Alternatives to VTI

Schwab Total Stock Market Index (SWTSX): SWTSX is a low-cost index fund that tracks the performance of the total U.S. stock market. It has an expense ratio of 0.03%, making it comparable to VTI.

iShares Core S&P Total U.S. Stock Market ETF (ITOT): ITOT is an ETF that tracks the performance of the total U.S. stock market. It has an expense ratio of 0.03%, making it comparable to VTI.

Introduction

Which Fund Is Right for You?

The best fund for you depends on your individual investment goals and risk tolerance. VTI is a good option for investors who want a low-cost, diversified fund that provides exposure to the entire U.S. stock market.

Conclusion

VTI is a well-established and well-respected index fund that has provided strong returns over the long term. It is a good option for investors who want a low-cost and diversified way to invest in the U.S. stock market.

Appendix

Glossary of Terms

Index fund: A fund that tracks the performance of a particular market index, such as the S&P 500 or the total U.S. stock market.
Expense ratio: A fee that is charged by a fund to cover its operating expenses.
Diversification: A strategy of investing in a variety of different assets to reduce risk.
Tax-efficient: A fund that generates relatively few capital gains distributions, which can reduce your tax bill.

Frequently Asked Questions

What is the difference between VTI and VOO? VTI tracks the performance of the total U.S. stock market, while VOO tracks the performance of the S&P 500 Index. The S&P 500 Index is a collection of the 500 largest publicly traded companies in the United States.
Is VTI a good investment for beginners? Yes, VTI is a good investment for beginners because it is low-cost, diversified, and tax-efficient.
How much should I invest in VTI? The amount you should invest in VTI depends on your individual investment goals and risk tolerance. A good rule of thumb is to invest no more than 10% of your portfolio in a single asset class.