Vanguard Total Stock Market ETF: The Ultimate Guide for 2023

Introduction

The Vanguard Total Stock Market ETF (VTI) is one of the most popular ETFs on the market, with over $1.3 trillion in assets under management. It tracks the CRSP US Total Market Index, which represents the entire U.S. stock market. This makes VTI a great choice for investors who want to get exposure to the entire U.S. stock market in a single investment.

Benefits of VTI

There are many benefits to investing in VTI, including:

• Diversification: VTI provides instant diversification across the entire U.S. stock market. This helps to reduce risk and improve returns.
• Low cost: VTI has an expense ratio of just 0.03%, making it one of the lowest-cost ETFs on the market.
• Transparency: VTI is a passively managed ETF, which means that it simply tracks the index it follows. This makes it easy to understand what you're investing in.
• Tax efficiency: VTI is a tax-efficient ETF, which means that it generates relatively low capital gains distributions.

Historical Performance

VTI has a long history of strong performance. Over the past 10 years, it has returned an average of 10.3% per year. This is well above the average return of the S&P 500 Index, which is the most widely followed stock market index in the United States.

How to Invest in VTI

You can invest in VTI through any brokerage account. You can buy and sell shares of VTI just like you would any other stock.

Alternatives to VTI

There are a few other ETFs that are similar to VTI, including:

• Schwab Total Stock Market ETF (SCHB)
• iShares Core S&P Total U.S. Stock Market ETF (ITOT)
• Fidelity ZERO Total Market Index Fund (FZROX)

These ETFs all track the same index as VTI, but they have different expense ratios and other features.

Conclusion

VTI is a great choice for investors who want to get exposure to the entire U.S. stock market in a single investment. It is a low-cost, tax-efficient ETF with a long history of strong performance.