The Vanguard Total Stock Market ETF (VTI) is an exchange-traded fund (ETF) that tracks the performance of the CRSP US Total Market Index, which represents approximately 100% of the investable US stock market. It is a well-diversified fund with over 3,500 stocks across various sectors, including technology, consumer discretionary, and healthcare. With a low expense ratio of 0.03%, it offers investors a low-cost way to gain exposure to the US equity market.
One of the key advantages of VTI is its diversification, allowing investors to spread their money across different sectors and companies. It includes large-, mid-, and small-cap companies, with large-cap companies making up about 80% of the portfolio. The fund has a relatively low turnover rate of 8% and is passively managed, tracking the performance of the index.
VTI has a minimum investment requirement of one share, which costs around $200-$250, depending on the market price. It is traded on the New York Stock Exchange, and investors can buy shares with no commission through Vanguard Brokerage Services.
Now, to address the question of whether VTI is automatically reinvested.
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Characteristics | Values |
---|---|
Fund Name | Vanguard Total Stock Market ETF (VTI) |
Investment Objective | Track the performance of the CRSP US Total Market Index |
Investment Approach | Indexing investment approach |
Number of Stocks | Over 3,500 |
Sector Exposure | Technology, consumer discretionary, healthcare |
Top Holdings | Apple, Microsoft, Amazon |
Expense Ratio | 0.03% |
Minimum Investment | $1 |
Dividend Yield | 1.42% |
Share Price | $216.96 |
Number of Shares | 1.49 billion |
Total Net Assets | $356.564 billion |
Average Volume | 3.46 million |
Beta | 1 |
What You'll Learn
VTI is Vanguard's Total Stock Market Index Fund ETF
The Vanguard Total Stock Market ETF (VTI) is an exchange-traded fund (ETF) that seeks to track the performance of the CRSP US Total Market Index. This index measures the investment return of the overall US stock market, including large-, mid-, small-, and micro-cap stocks. The fund employs an indexing investment approach and invests by sampling the index, holding a broadly diversified collection of securities that approximate the full index in terms of key characteristics.
VTI is one of the many ETF offerings from Vanguard, an investment giant with $8.1 trillion in assets under management as of December 2022. It has been around since 2001 and has a minimum investment of $1, which is lower than many other Vanguard funds. The ETF's expense ratio is 0.03%, which is well below the industry average, and it has a broad exposure to the stock market. As of July 2023, VTI's top holdings included Apple, Microsoft, and Amazon.
VTI offers investors a diversified collection of securities that represent the US stock market. It provides exposure to various sectors, with a focus on technology and consumer discretionary. The fund's performance is linked to the CRSP US Total Market Index, which comprises approximately 100% of investable US stocks traded on the New York Stock Exchange and Nasdaq. As of February 2024, VTI had total net assets of $356.564 billion.
VTI is a passively managed ETF, which means that Vanguard takes a more hands-off approach to investment decisions compared to actively managed funds. It has a 10-year average annual return rate of 12.07%, slightly lower than the Vanguard S&P 500 ETF (VOO), which has a 10-year average annual return rate of 12.61%.
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VTI tracks the performance of the CRSP US Total Market Index
The Vanguard Total Stock Market ETF (VTI) tracks the performance of the CRSP US Total Market Index. The fund measures the investment return of the overall stock market and includes large-, mid-, small-, and micro-cap stocks. It is designed to closely follow the performance of the index, which represents almost 100% of the investable US stock market.
VTI is a market capitalization-weighted index that measures the entire investable US equity market. It is a well-diversified exchange-traded fund (ETF) that holds over 3,700 stocks, with its top sector being technology, followed by consumer discretionary and industrial care. The fund is passively managed and has a low expense ratio of 0.03%, making it a low-cost way to gain exposure to the US equity market.
VTI has a relatively low turnover rate of 8%, indicating limited transaction costs for changing the fund's holdings. The fund's expense ratio does not include any commissions or brokerage fees, which is beneficial for long-term investors. It has a large number of holdings, reflecting the entire universe of investable US securities.
The Vanguard Total Stock Market ETF is an open-ended fund issued by Vanguard and advised by the Vanguard Equity Investment Group. It is a passive index fund, and its shares are traded on the New York Stock Exchange. Investors can purchase shares without paying a commission through Vanguard Brokerage Services.
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VTI has a minimum investment of $1
VTI, or Vanguard Total Stock Market ETF, is an Exchange-Traded Fund (ETF) that tracks the Total US Stock Market Index. This ETF is unique in that it includes every publicly traded company in the US, or just over 3,500 companies.
VTI is a well-diversified fund, with over 3,700 stocks in its portfolio. The fund is weighted towards larger companies, with large-cap companies making up about 80% of the portfolio. However, it also includes medium-cap and small-cap companies, which make up the remaining 20%. This mix of company sizes is advantageous as smaller and medium-capitalization companies tend to grow at a faster pace than large-cap companies over the long term.
VTI also has a low expense ratio, typically sitting at around 0.03%. This means that for every $10,000 invested, investors will pay $3 in management fees. When compared to a mutual fund with a 1% expense ratio, this can result in significant savings over time.
In terms of sector exposure, VTI is diversified across various sectors, including technology, consumer discretionary, and healthcare. As of July 2023, VTI's top holdings were Apple, Microsoft, and Amazon.
Overall, VTI offers a low-cost, diversified investment option with exposure to the Total US Stock Market Index. With its mix of large, medium, and small-cap companies and strong historical performance, it can be a solid addition to an investment portfolio.
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VTI's top sector is technology
The Vanguard Total Stock Market ETF (VTI) is an exchange-traded fund that offers investors broad exposure to the US stock market. The fund's top sector is technology, with 30.1% of its portfolio invested in tech stocks as of July 2023. This includes companies such as Microsoft, Apple, and Amazon, which were VTI's top three holdings as of April 2023.
VTI's large exposure to the tech sector is reflected in its top holdings. As of July 2023, VTI held stocks in Meta Platforms, Microsoft, and Alphabet (the parent company of Google). These companies are all leaders in the technology industry and are responsible for some of the most widely used software and hardware in the world. Meta Platforms, for example, is the company behind Facebook, Instagram, and WhatsApp, while Microsoft develops and sells the Windows operating system, as well as a wide range of other software products. Alphabet, meanwhile, is the parent company of Google, the world's largest search engine, and a leader in online advertising and cloud computing.
In addition to these tech giants, VTI also has significant investments in other technology companies. These include:
- Advanced Micro Devices, a semiconductor company that develops computer processors and related technologies.
- International Business Machines Corporation (IBM), a multinational technology company that offers a wide range of technology and consulting services.
- Texas Instruments, another semiconductor company that designs and manufactures analog and embedded processing chips.
- QUALCOMM Incorporated, a company that creates wireless technology and products for the mobile industry.
By investing in VTI, investors gain exposure to a diversified collection of securities that approximates the full CRSP US Total Market Index, which represents nearly 100% of the investable US stock market. This includes large-, mid-, small-, and micro-cap stocks across a variety of sectors, with a particular focus on technology.
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VTI is a market capitalization-weighted fund
The Vanguard Total Stock Market ETF (VTI) is a market capitalization-weighted fund that tracks the performance of the CRSP US Total Market Index. This index represents approximately 100% of the investable US stock market, including large-, mid-, small-, and micro-cap stocks.
Being a market capitalization-weighted fund, VTI's holdings are proportional to the market capitalization of each company in the fund. This means that companies with larger market capitalizations, or market caps, will have a higher weight in the fund, and therefore, a greater impact on its performance.
VTI is a well-diversified fund with over 3,700 stocks, providing investors with broad exposure to the US stock market. Its top sector is technology, with a weighting of around 30%, followed by the consumer discretionary sector, with a weighting of about 14%.
The fund's top holdings include well-known companies such as Apple, Microsoft, Amazon, and Alphabet. With a low expense ratio of 0.03% and a relatively low turnover rate, VTI offers investors a cost-effective way to gain exposure to the US equity market.
VTI has been in existence since 2001 and has provided investors with an average annual return of 8.3% since its inception. Its performance reflects the gains of the overall stock market, making it a popular choice for those seeking to track the market's performance.
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Frequently asked questions
The minimum investment for an exchange-traded fund like VTI is typically one share. As of February 2024, one share of VTI costs around $248, but the price can vary, so check the current price before investing. Some brokers may also allow investors to purchase fractions of a share.
You can buy VTI shares through Vanguard Brokerage Services or other investment platforms like Robinhood. You will need to open an account, provide personal and financial information, and fund your account before you can start investing.
VTI pays dividends every three months, and you can choose to reinvest them or receive them as cash payments. To automatically reinvest, you may need to set up a dividend reinvestment plan (DRIP) with your broker.
Reinvesting dividends allows you to compound your returns and grow your investment over time. By reinvesting dividends, you buy additional shares of VTI, increasing your overall position and potential for gains.
Yes, you can set up automatic contributions to VTI through your investment platform or broker. Automatic contributions can help you invest consistently and take advantage of dollar-cost averaging. However, you may need to manually purchase VTI with those contributions, depending on the platform.