Vanguard Total Stock Market Index Institutional Plus Shares (VTI): A Comprehensive Guide

Introduction

The Vanguard Total Stock Market Index Institutional Plus Shares (VTI) is an exchange-traded fund (ETF) that tracks the performance of the entire U.S. stock market. It is one of the most popular and widely-traded ETFs in the world, with over $1 trillion in assets under management.

Key Features

• Ticker: VTI
• Expense ratio: 0.03%
• Dividend yield: 1.59%
• Assets under management: $1.12 trillion
• Number of holdings: 3,552

Investment Objective

The investment objective of VTI is to provide investors with exposure to the entire U.S. stock market. The fund tracks the CRSP US Total Market Index, which includes all publicly-traded companies in the United States, regardless of size or industry.

Benefits of Investing in VTI

There are many benefits to investing in VTI, including:

• Diversification: VTI provides investors with instant diversification across the entire U.S. stock market. This helps to reduce risk and improve returns.
• Low cost: VTI has a very low expense ratio of just 0.03%. This means that investors keep more of their hard-earned money.
• Tax efficiency: VTI is a tax-efficient investment. Dividends are paid out as qualified dividends, which are taxed at a lower rate than ordinary income.
• Liquidity: VTI is a highly liquid ETF. This means that investors can buy and sell shares easily and quickly.

How to Invest in VTI

VTI can be purchased through a brokerage account. Investors can choose to buy shares of VTI directly or through a mutual fund that invests in VTI.

Performance

VTI has a long history of strong performance. Over the past 10 years, the fund has returned an average of 10.2% per year. This is significantly higher than the average return of the S&P 500 Index, which has returned an average of 9.5% per year over the same period.

Conclusion

VTI is a well-diversified, low-cost, and tax-efficient ETF that provides investors with exposure to the entire U.S. stock market. It is a great option for long-term investors who are looking for a low-maintenance way to grow their wealth.

Additional Information

• Website: https://investor.vanguard.com/etf/profile/VTI
• Morningstar: https://www.morningstar.com/etfs/arcx/vti/quote
• Bloomberg: https://www.bloomberg.com/quote/VTI:US

FAQs

• What is the difference between VTI and VOO?

VTI tracks the entire U.S. stock market, while VOO tracks the S&P 500 Index. VTI is more diversified than VOO, but VOO has a slightly lower expense ratio.

• Is VTI a good investment for beginners?

Yes, VTI is a good investment for beginners. It is a low-cost, well-diversified ETF that provides investors with exposure to the entire U.S. stock market.

• How often does VTI pay dividends?

VTI pays dividends quarterly.