VTI ETF Review – Is VTI a Good Investment? (U.S. Stocks)

VTI is an extremely popular ETF to capture the entire U.S. stock market. Is it a good investment? I review it here.

// TIMESTAMPS:

00:00 - Intro - What, Why, and How
01:46 - Is VTI a Good Investment?

// SUMMARY:

VTI is the Vanguard Total Stock Market ETF. It launched in 2001. As the name suggests, the fund captures the entire investable U.S. stock market in the form of over 4,000 holdings across large, medium, and small stocks. It does so by tracking the CRSP U.S. Total Market Index, which is market cap weighted.

In case you didn’t know, Vanguard is the go-to for reliable and highly liquid index funds with the lowest fees. If you’ve landed here, hopefully you do already know that passive indexing is a great way to diversify your investment portfolio and avoid stock picking and sector bets, which tend to be fool’s errands.

Most are familiar with the famous S&P 500 index, which is comprised of the 500 largest U.S. stocks, and for which Vanguard’s ETF offering is VOO. But some don’t realize that VTI can be considered more diversified with more holdings and more cap sizes. Specifically, VTI is roughly 82% large caps, 12% mid caps, and 6% small caps. Small stocks are riskier than large stocks, so investors expect to be compensated with greater returns for holding these smaller stocks in VTI.

VTI is indeed a good investment in the sense that stocks in general tend to be a good investment. After all, VTI is the entire U.S. stock market. Historically it has had an annualized return of about 10% with volatility of about 15%:

VTI is a great one-fund solution for U.S. investors to be well-diversified across styles and cap sizes. Don’t mistake this broad diversification as meaning VTI is low-risk, though. Stocks are risky investments by their very nature; that’s why we invest in them. Notice the drawdown of nearly 51% during the fund’s lifetime.

Conveniently, as is the Vanguard way, the fund is also very affordable at only 0.03% and has low turnover. This saves the long term investor big bucks on fees and trading costs over their lifetime. VTI also has an Admiral Shares mutual fund equivalent VTSAX.

The only other thing to keep in mind is that it’s likely wise to diversify globally in stocks instead of solely investing in one single country. To do that, a popular fund from Vanguard for international stocks is VXUS, which captures all stocks outside the United States.

#indexfunds #stockmarket #indexinvesting

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[OptimizedPortfolio]

VTI is the total U.S. stock market and is the primary component of the famous Bogleheads 3 Fund Portfolio. Just remember it's still only about half of the global stock market.

[seanharrington]

Bro- these are great short clips / your channel is about to explode 🤯

[JuanPablo-grpp]

Love vti. Will start investing soon following the three fund portfolio

[noreenn]

I have VTSAX. Can you do a video on Fidelity international index funds?

[NATOnova]

Appreciate this Clear and concise analysis. I don't understand why VTI and other total market funds are way less popular than sp500 funds. To me seems like a no Brainer o go for VTI over sp500

[captainnitrousx]

I own VTI because of the diversification, price to book and price to earnings ratio. Overall it has the best numbers for a broad Market ETF. Goes great in a taxable brokerage account. Great long term fund of 15 yrs or more.

[newbeginnings]

Over 100 shares for me! Do you recommend adding small caps? Making portfolio effectively 10% small cap allocation after adding 4%?

[arigutman]

Great video, EXCELLENT investment fund. I am a huge fan of VTI and it aligns with the Bogle approach of just investing into the broad market allowing yourself to invest into both growth and value investments ranging from small, mid and large caps. It also has a little over 4, 000 stocks within it.. VTI is not only the foundation of my portfolio, but what I consider to be a fail-safe investment!

[sleepevenbetter]

Love your channel, keep up the great work - your insight is always very much appreciated.
Quick question for you: would you prefer to own just VTI, or do you think a mix of VOO & VXF would do better since it gives you more exposure to the mid and small cap stocks than VTI does?

[mikeballer]

Vti, vgt, vxus, bnd, bndx, schd, vnq. The only ETFs I need for a good portfolio. I might add some precious metals to the mix

[akin]

Is it a good long-term investment? Of course. 4k stock holdings, performed better in the 2000s than the S&P 500, and competitive with the S&P 500 in the USA bullish 2010s. Performance is the best among similar Total USA ETFs (SCHB or ITOT).

[ne]

I’m sensing you watch a lot of Ben Felix

[ChapmanRod-dl]

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