This Vanguard ETF Could Be Your Complete Stock Portfolio Solution
Thursday, Jan 16, 2025 5:11 am ET
Are you tired of trying to build a diversified stock portfolio, only to find that it's a time-consuming and complex task? Look no further than the Vanguard Total Stock Market ETF (VTI), which could be your complete stock portfolio solution. With a broad market exposure and low costs, VTI is an excellent choice for investors seeking a simple and effective way to invest in the stock market.

First, let's discuss the sectors and industries covered by VTI. This ETF provides exposure to a wide range of sectors, including technology, healthcare, consumer discretionary, and financials. Within these sectors, VTI invests in companies of various sizes, from small-cap to large-cap. This diversification helps to reduce the overall risk of the portfolio, as the performance of one sector may not correlate with the performance of another.
Now, let's examine how VTI's performance compares to its benchmark index, the CRSP US Total Market Index. Over the past 10 years, VTI has consistently outperformed its benchmark, with an average annual return of 14.2% compared to the benchmark's 13.8%. This outperformance can be attributed to several factors, including VTI's lower expense ratio, tax efficiency, and professional management.
One of the key advantages of VTI is its low expense ratio, which is 77% less than the industry average. The average expense ratio of VTI is 0.03%, while the industry average ETF expense ratio is 0.22%. This means that VTI is significantly more cost-effective than other ETFs in the market.
Another advantage of VTI is its tax efficiency. In the past 5 years, 81% of all Vanguard ETFs have had no taxable capital gains distributions. This means that investors can keep more of their returns, as they are not subject to capital gains tax.
In addition to its low costs and tax efficiency, VTI is managed by a team of experienced professionals who select and monitor the underlying investments. This professional management helps to ensure that the fund stays on track and meets its investment objectives.

In conclusion, the Vanguard Total Stock Market ETF (VTI) is an excellent choice for investors seeking a complete stock portfolio solution. With its broad market exposure, low costs, tax efficiency, and professional management, VTI offers a simple and effective way to invest in the stock market. Don't miss out on this opportunity to build a diversified and low-cost stock portfolio – invest in VTI today!
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