Vanguard Admiral Total Stock: The Ultimate Guide to the VTTSX Fund

Introduction

Vanguard Admiral Total Stock Market Index Fund (VTTSX) is a low-cost index fund that tracks the performance of the entire U.S. stock market. With over $1 trillion in assets under management, VTTSX is one of the largest and most popular index funds in the world.

Investment Objectives

• VTTSX seeks to provide investors with long-term capital appreciation by tracking the performance of the CRSP US Total Market Index.
• This index includes approximately 4,000 companies of all sizes, from large-cap blue chips to small-cap growth stocks.

Expense Ratio

• VTTSX has a low expense ratio of 0.04%, making it one of the most cost-effective index funds on the market.
• This means that investors pay only $4 for every $10,000 invested in the fund each year.

Historical Performance

• VTTSX has consistently outperformed its benchmark index, the CRSP US Total Market Index, over the long term.
• Over the past 10 years, VTTSX has returned an average of 10.5% per year, compared to 9.8% for the index.

Investment Strategy

• VTTSX uses a passive investment strategy, which means that it tracks the performance of its benchmark index without making any active investment decisions.
• This strategy helps to keep expenses low and reduce the risk of underperforming the market.

Diversification

• VTTSX provides investors with excellent diversification by investing in a broad range of U.S. companies.
• This helps to reduce the risk of any single company or sector having a significant impact on the fund's performance.

Tax Efficiency

• VTTSX is a tax-efficient fund, meaning that it generates relatively low capital gains distributions.
• This can be especially beneficial for investors in taxable accounts.

Investment Risks

• VTTSX is subject to the same risks as any other stock investment.
• These risks include market volatility, interest rate changes, and economic downturns.

Suitability

• VTTSX is suitable for investors who want a low-cost, diversified investment that tracks the performance of the entire U.S. stock market.
• It is also a good choice for long-term investors who are not concerned with short-term volatility.

How to Buy VTTSX

• VTTSX can be purchased through Vanguard or through other brokers.
• Investors can choose to invest in the fund directly or through a retirement account.

Vanguard Admiral Total Stock Market Index Fund (VTTSX) vs. Other Index Funds

As you can see, VTTSX has a lower expense ratio and a slightly higher 10-year return than VTI, IVV, and SPY, which are other popular index funds.

Conclusion

Vanguard Admiral Total Stock Market Index Fund (VTTSX) is a low-cost, diversified index fund that provides investors with exposure to the entire U.S. stock market. VTTSX has a long track record of strong performance and is suitable for investors of all types.