Vanguard total return etf

Vanguard total return etf DEFAULT

Vanguard Total Stock Market (VTI): Historical Returns

Data Source: from January 1972 to September 2021

Last Update: 30 Sep 2021

Category:Stocks

ETF:Vanguard Total Stock Market (VTI)

In the last 10 years, the Vanguard Total Stock Market (VTI) ETF obtained a 16.6% compound annual return, with a 13.67% standard deviation.

In the last 25 years, a 9.79% compound annual return, with a 15.70% standard deviation.

In 2020, the portfolio granted a 1.71% dividend yield. If you are interested in getting periodic income, please refer to the Vanguard Total Stock Market (VTI) ETF: Dividend Yield page.

The ETF is related to the following investment themes:

  • Asset Class: Equity
  • Size: Large Cap
  • Style: Blend
  • Region: North America
  • Country: U.S.

The Vanguard Total Stock Market (VTI) ETF is present in the following Lazy Portfolios:

Capital Growth and Historical Returns

Capital growth, returns, stats are calculated assuming a reinvestment of dividends.

If you are interested in getting periodic income, please refer to the Vanguard Total Stock Market (VTI) ETF: Dividend Yield page.

An investment of 1000$, since October 1996, now would be worth 10329.13$, with a total return of 932.91% (9.79% annualized).

An investment of 1000$, since January 1972, now would be worth 167552.00$, with a total return of 16655.20% (10.84% annualized).

ETF Returns, up to December 2001, are simulated. They have been calculated using the historical series of equivalent ETFs / Assets.

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PeriodReturns
Sep 2021
Standard
Deviation *
Max
Drawdown
Months
Pos - Neg

1M

-4.46%

-4.46%

Sep 2021 - Sep 2021

0 - 1

3M

-0.03%

-4.46%

Sep 2021 - Sep 2021

2 - 1

6M

+8.10%

-4.46%

Sep 2021 - Sep 2021

5 - 1

YTD

+15.18%

-4.46%

Sep 2021 - Sep 2021

7 - 2

1Y

+32.16%

13.43%

-4.46%

Sep 2021 - Sep 2021

9 - 3

3Y

+16.05%

annualized

19.27%

-20.84%

Jan 2020 - Mar 2020

25 - 11

5Y

+16.88%

annualized

15.59%

-20.84%

Jan 2020 - Mar 2020

46 - 14

10Y

+16.60%

annualized

13.67%

-20.84%

Jan 2020 - Mar 2020

88 - 32

20Y

+10.07%

annualized

14.99%

-50.84%

Nov 2007 - Feb 2009

162 - 78

25Y

+9.79%

annualized

15.70%

-50.84%

Nov 2007 - Feb 2009

196 - 104

MAX

01 Jan 1972

+10.84%

annualized

15.55%

-50.84%

Nov 2007 - Feb 2009

376 - 221

* Annualized St.Dev. of monthly returns

Drawdowns

Worst drawdowns since October 1996.

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Drawdown period

Recovery period

Total

DrawdownStartBottom#MonthsEnd#Months#Months
-50.84% Nov 2007 Feb 2009 16 Feb 2012 3652
-43.94% Sep 2000 Sep 2002 25 Mar 2006 4267
-20.84% Jan 2020 Mar 2020 3 Jul 2020 47
-17.56% Jul 1998 Aug 1998 2 Nov 1998 35
-14.20% Oct 2018 Dec 2018 3 Apr 2019 47
-8.83% Aug 2015 Sep 2015 2 May 2016 810
-8.44% Apr 2000 May 2000 2 Aug 2000 35
-6.83% Apr 2012 May 2012 2 Aug 2012 35
-6.45% May 2019 May 2019 1 Jun 2019 12
-6.43% Jul 1999 Sep 1999 3 Nov 1999 25
-5.64% Feb 2018 Mar 2018 2 Jul 2018 46
-5.42% Sep 2020 Oct 2020 2 Nov 2020 13
-5.23% Jun 2007 Jul 2007 2 Oct 2007 35
-4.56% Feb 1997 Mar 1997 2 May 1997 24
-4.46% Sep 2021 Sep 2021 1 in progress 1
-4.18% Jan 2000 Jan 2000 1 Mar 2000 23
-3.73% Feb 1999 Feb 1999 1 Mar 1999 12
-3.72% Aug 1997 Aug 1997 1 Sep 1997 12
-3.40% Oct 1997 Oct 1997 1 Dec 1997 23
-3.22% May 2006 May 2006 1 Sep 2006 45

Worst drawdowns since January 1972.

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Drawdown period

Recovery period

Total

DrawdownStartBottom#MonthsEnd#Months#Months
-50.84% Nov 2007 Feb 2009 16 Feb 2012 3652
-45.86% Jan 1973 Sep 1974 21 Dec 1976 2748
-43.94% Sep 2000 Sep 2002 25 Mar 2006 4267
-29.34% Sep 1987 Nov 1987 3 May 1989 1821
-20.84% Jan 2020 Mar 2020 3 Jul 2020 47
-17.83% Dec 1980 Jul 1982 20 Oct 1982 323
-17.56% Jul 1998 Aug 1998 2 Nov 1998 35
-16.19% Jun 1990 Oct 1990 5 Feb 1991 49
-14.20% Oct 2018 Dec 2018 3 Apr 2019 47
-11.98% Mar 1980 Mar 1980 1 Jun 1980 34
-11.64% Sep 1978 Oct 1978 2 Mar 1979 57
-10.95% Jul 1983 May 1984 11 Dec 1984 718
-9.64% Jan 1977 Feb 1978 14 Apr 1978 216
-8.83% Aug 2015 Sep 2015 2 May 2016 810
-8.44% Apr 2000 May 2000 2 Aug 2000 35
-7.92% Sep 1986 Sep 1986 1 Jan 1987 45
-7.43% Feb 1994 Jun 1994 5 Feb 1995 813
-7.22% Oct 1979 Oct 1979 1 Dec 1979 23
-7.01% Jan 1990 Jan 1990 1 May 1990 45
-6.83% Apr 2012 May 2012 2 Aug 2012 35

Rolling Returns ( more details)

Vanguard Total Stock Market (VTI) ETF: annualized rolling and average returns

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Return (*)Negative
Periods
Rolling PeriodAverageBestWorst
1 Year
+12.11%+66.73%
Jul 1982 - Jun 1983
-43.33%
Mar 2008 - Feb 2009
20.99%
2 Years
+11.29%+39.52%
Mar 2009 - Feb 2011
-26.16%
Mar 2007 - Feb 2009
13.76%
3 Years
+11.25%+30.70%
Apr 1995 - Mar 1998
-16.22%
Apr 2000 - Mar 2003
12.46%
5 Years
+11.29%+27.25%
Aug 1982 - Jul 1987
-6.14%
Mar 2004 - Feb 2009
7.81%
7 Years
+11.29%+21.23%
Aug 1982 - Jul 1989
-2.98%
Mar 2002 - Feb 2009
1.17%
10 Years
+11.22%+18.89%
Oct 1990 - Sep 2000
-2.47%
Mar 1999 - Feb 2009
2.93%
15 Years
+11.03%+18.21%
Aug 1982 - Jul 1997
+4.37%
Sep 2000 - Aug 2015
0.00%
20 Years
+11.00%+17.30%
Apr 1980 - Mar 2000
+4.98%
Apr 2000 - Mar 2020
0.00%

* Annualized rolling and average returns over full calendar month periods

If you need a deeper detail about rolling returns, please refer to the Vanguard Total Stock Market (VTI) ETF: Rolling Returns page.

Seasonality and Yearly/Monthly Returns

In the table below, for the Vanguard Total Stock Market (VTI) ETF, the average monthly return is represented.

Below each return, it's also mentioned the probability of obtaining a positive monthly result (Win %).

Both the Average Return and the Gain Frequency are useful to get an idea of what happened in the past.

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Monthly Average Return (%) and Gain Frequency
Return (%)JanFebMarAprMayJunJulAugSepOctNovDec
Average
Win %
1.50
60%
0.62
62%
0.95
66%
1.81
72%
1.03
66%
0.77
60%
0.75
48%
0.45
60%
-0.57
52%
0.76
59%
1.98
76%
1.55
76%
Best
Year
14.1
1975
7.3
1998
8.3
2009
13.1
2020
8.8
1990
7.1
2019
7.8
1997
11.9
1982
9.5
2010
16.9
1974
11.8
2020
10.6
1991
Worst
Year
-8.1
2009
-10.5
2009
-13.9
2020
-5.2
2000
-7.9
2010
-8.1
2008
-8.3
2002
-15.7
1998
-11.1
1974
-22.3
1987
-12.1
1973
-9.2
2018

Statistics calculated for the period Jan 1972 - Sep 2021

For further information about the seasonality, check the Asset Class Seasonality page.

Monthly Returns of Vanguard Total Stock Market (VTI) ETF:

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Months
YearReturnJanFebMarAprMayJunJulAugSepOctNovDec
2021
+15.18% -0.3 3.1 3.7 5.0 0.5 2.5 1.7 2.9 -4.5
2020
+21.03% -0.1 -8.0 -13.9 13.1 5.4 2.3 5.7 7.1 -3.5 -2.0 11.8 4.7
2019
+30.67% 8.5 3.6 1.4 3.9 -6.5 7.1 1.4 -2.1 1.8 2.1 3.8 2.8
2018
-5.21% 5.2 -3.8 -2.0 0.5 2.7 0.7 3.3 3.4 0.2 -7.4 2.0 -9.2
2017
+21.21% 1.9 3.7 0.1 1.1 1.0 1.0 1.9 0.2 2.4 2.2 3.0 1.2
2016
+12.83% -5.7 0.0 7.1 0.7 1.7 0.3 4.0 0.2 0.2 -2.2 4.5 2.0
2015
+0.36% -2.7 5.7 -1.2 0.6 1.3 -1.7 1.7 -6.1 -2.9 7.9 0.6 -2.1
2014
+12.54% -3.2 4.9 0.5 0.1 2.1 2.6 -2.0 4.2 -2.1 2.8 2.5 0.0
2013
+33.45% 5.4 1.3 4.0 1.6 2.4 -1.4 5.8 -3.0 3.9 4.3 2.7 2.7
2012
+16.45% 5.1 4.2 3.1 -0.6 -6.2 4.1 0.9 2.7 2.5 -1.8 0.8 1.3
2011
+0.97% 2.1 3.7 0.4 2.9 -1.1 -1.8 -2.3 -6.1 -7.6 11.4 -0.4 1.0
2010
+17.42% -3.6 3.4 6.4 2.2 -7.9 -5.8 7.0 -4.7 9.5 4.0 0.5 7.0
2009
+28.89% -8.1 -10.5 8.3 11.0 5.5 0.4 7.7 3.7 4.1 -2.6 5.7 2.9
2008
-36.98% -6.2 -2.5 -0.9 4.9 2.0 -8.1 -0.6 1.5 -9.2 -17.5 -8.0 1.8
2007
+5.37% 1.9 -1.6 1.1 4.0 3.7 -1.8 -3.5 1.5 3.9 1.8 -4.5 -0.7
2006
+15.69% 3.2 0.2 2.1 1.0 -3.2 0.1 -0.1 2.3 2.3 3.5 2.3 1.2
2005
+6.31% -2.5 2.1 -1.9 -2.2 3.9 0.8 4.4 -1.1 0.8 -2.4 4.6 0.0
2004
+12.79% 2.6 1.4 -1.0 -2.2 1.5 2.0 -3.6 0.1 1.7 1.8 4.7 3.4
2003
+30.75% -2.8 -1.5 0.8 8.6 5.8 1.6 2.3 2.4 -1.1 6.1 1.5 4.0
2002
-20.47% -0.9 -1.8 3.7 -4.5 -1.4 -6.9 -8.3 0.8 -10.1 7.5 6.0 -5.1
2001
-10.97% 3.8 -9.4 -6.7 8.2 1.0 -1.6 -1.7 -6.0 -9.0 2.5 7.6 1.8
2000
-10.57% -4.2 2.5 5.7 -5.2 -3.4 4.4 -2.0 7.3 -4.7 -2.0 -9.9 1.8
1999
+23.81% 3.7 -3.7 3.9 4.7 -2.0 5.2 -3.2 -0.9 -2.4 6.3 3.4 7.6
1998
+23.26% 0.4 7.3 5.1 1.1 -2.7 3.5 -2.3 -15.7 6.7 7.5 6.2 6.5
1997
+30.99% 5.5 -0.1 -4.5 4.5 7.1 4.4 7.8 -3.7 5.8 -3.4 3.3 1.7
1996
+20.96% 2.7 1.6 1.1 2.4 2.7 -0.8 -5.4 3.1 5.4 1.4 6.8 -1.3
1995
+35.79% 2.2 4.0 2.7 2.5 3.5 3.0 4.0 1.1 3.6 -1.2 4.2 1.5
1994
-0.17% 3.1 -2.2 -4.4 0.9 1.0 -2.7 3.1 4.4 -1.9 1.6 -3.7 1.2
1993
+10.62% 1.0 0.5 2.5 -2.8 3.0 0.6 -0.3 3.9 0.0 1.6 -1.6 1.9
1992
+9.11% 0.0 1.3 -2.4 1.4 0.5 -1.9 3.9 -2.1 1.1 1.2 4.2 1.8
1991
+32.39% 5.0 6.9 2.9 0.4 4.0 -4.5 4.8 2.7 -1.2 1.7 -3.8 10.6
1990
-6.08% -7.0 1.6 2.5 -2.8 8.8 -0.5 -1.1 -9.0 -5.2 -1.2 6.4 3.0
1989
+28.12% 6.6 -1.8 2.1 4.8 3.9 -0.2 7.6 2.3 -0.2 -2.8 1.6 1.8
1988
+17.32% 4.4 5.2 -1.4 1.1 -0.1 4.9 -0.6 -2.8 3.7 1.7 -1.6 2.0
1987
+2.61% 12.9 4.8 2.3 -1.5 0.5 4.2 4.6 3.8 -2.1 -22.3 -7.2 7.3
1986
+14.57% 0.8 7.1 5.8 -0.8 4.9 1.3 -5.9 6.4 -7.9 4.8 1.4 -2.9
1985
+31.27% 9.1 1.8 -0.4 -0.2 5.5 1.7 0.0 -0.7 -4.1 4.4 6.8 4.2
1984
+2.19% -1.5 -4.0 1.3 0.3 -5.3 2.3 -2.1 11.1 0.0 0.0 -1.3 2.3
1983
+22.66% 4.1 3.0 3.5 7.4 1.3 3.8 -3.2 0.4 1.7 -2.8 3.0 -1.0
1982
+20.50% -2.7 -5.1 -1.0 4.4 -2.8 -2.4 -2.0 11.9 1.7 11.8 5.1 1.5
1981
-4.15% -4.1 1.6 4.6 -1.2 1.4 -1.0 -0.3 -5.6 -6.4 6.0 4.6 -2.8
1980
+33.15% 6.5 0.2 -12.0 5.2 6.0 3.7 6.9 2.3 2.9 2.1 10.6 -3.5
1979
+24.25% 4.9 -2.7 6.6 0.8 -1.4 4.6 1.5 6.5 0.2 -7.2 6.4 2.8
1978
+8.45% -5.6 -1.0 3.4 8.3 2.3 -1.1 5.7 4.2 -0.7 -11.0 3.5 1.7
1977
-3.36% -3.7 -1.6 -1.0 0.5 -1.1 5.2 -1.3 -1.4 0.1 -4.0 4.5 0.8
1976
+26.47% 12.6 0.6 2.7 -1.0 -0.9 4.5 -0.7 -0.2 2.5 -2.1 0.4 6.1
1975
+37.82% 14.1 5.9 3.1 4.8 5.6 5.2 -6.1 -2.3 -3.8 5.7 3.1 -1.1
1974
-27.81% 0.3 0.3 -2.3 -4.6 -4.1 -2.2 -7.1 -8.7 -11.1 16.9 -4.1 -2.7
1973
-18.18% -2.7 -4.4 -0.7 -5.1 -2.3 -0.8 5.7 -2.9 5.4 0.0 -12.1 1.3
1972
+17.62% 2.8 3.2 0.9 0.6 1.7 -2.1 -0.4 3.7 -0.7 0.9 5.0 1.2

ETF Returns, up to December 2001, are simulated. They have been calculated using the historical series of equivalent ETFs / Assets.

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Best total stock market index funds

Index funds have gained enormous popularity with investors over the past few decades as a cost-effective way to gain access to highly diversified portfolios. Through mutual funds and ETFs, total market index funds allow investors to purchase a basket of stocks that track an index focused on the overall U.S. stock market. They can be a great way for investors to benefit from a country’s economic growth without having to select which individual companies to invest in.

Here’s what else you should know about total market index funds and a few options to consider.

What is a total stock market index fund?

A total market index fund is a mutual fund or ETF that tracks an index focused on virtually the entire stock market of a country or region. Many people are familiar with index funds that track popular indexes such as the S&P 500 or the Dow Jones Industrial Average, but those funds hold companies with large market capitalizations and exclude small and mid-sized companies. Total market funds hold companies across the market-cap spectrum and allow investors to earn the return of the overall stock market.

Most total market index funds are weighted by market capitalization, so the funds will still have a large exposure to the largest companies in the U.S. such as Amazon, Apple and Microsoft. But the funds will also own small-cap companies that may have more room to grow and potentially earn higher returns than their large-cap counterparts.

Total market index funds typically come with very low fees, allowing more of the return to fall to the funds’ investors. This is a key part of index-fund investing, which allows investors to earn the return of the market without needing to have deep financial knowledge or stock-picking skills. Keeping expenses low has proven to be a successful investing strategy for many.

Top performing total stock market ETFs

Bankrate selected its top funds based on the following criteria:

  • U.S. funds that appear in ETF.com’s screener for U.S. total market
  • Funds among the top performers over the last five years
  • Performance measured on Sept. 20, 2021 using the most recent figures

Vanguard Total Stock Market ETF (VTI)

This ETF seeks to track the performance of the CRSP U.S. Total Market Index and invests in large-, mid- and small-cap companies across the value and growth styles.

  • Year-to-date performance: 18.4 percent
  • Historical performance (5-year annual): 17.9 percent
  • Expense ratio: 0.03 percent

Schwab U.S. Broad Market ETF (SCHB)

This fund’s goal is to track the total return of the Dow Jones U.S. Broad Stock Market Index, which includes companies across the market-cap spectrum.

  • Year-to-date performance: 18.5 percent
  • Historical performance (5-year annual): 17.9 percent
  • Expense ratio: 0.03 percent

iShares Core S&P Total U.S. Stock Market ETF (ITOT)

This fund seeks to track the performance of the S&P Total Market Index and currently holds more than 3,700 securities.

  • Year-to-date performance: 18.5 percent
  • Historical performance (5-year annual): 17.8 percent
  • Expense ratio: 0.03 percent

SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM)

This fund seeks to match as closely as possible the total return of the S&P Composite 1500 Index, which represents about 90 percent of the investable U.S. equity market.

  • Year-to-date performance: 19.2 percent
  • Historical performance (5-year annual): 17.6 percent
  • Expense ratio: 0.03 percent

Top-performing total stock market mutual funds

Many of the ETFs mentioned above are also offered in mutual fund form. But keep in mind that mutual funds typically carry investment minimums of a few thousand dollars and can only be traded once a day at the fund’s closing NAV. On the plus side, they may come with slightly lower fees than comparable ETFs. Below are a couple total market mutual funds to also consider.

Fidelity Total Market Index Fund (FSKAX)

This fund’s objective is to generate a return that corresponds to the total return on a broad range of U.S. stocks, and it typically has about 80 percent of its assets invested in stocks included in the Dow Jones U.S. Total Stock Market Index.

  • Year-to-date performance: 16.3 percent
  • Historical performance (5-year annual): 17.2 percent
  • Expense ratio: 0.015 percent

Wilshire 5000 Index Investment Fund (WFIVX)

This fund seeks to replicate the total return of the Wilshire 5000 Total Market Index, which includes 3,500 stocks and is market-cap weighted.

  • Year-to-date performance: 15.8 percent
  • Historical performance (5-year annual): 16.4 percent
  • Expense ratio: 0.63 percent

* Note: Mutual fund performance data as of Sept. 21, 2021

Pros and cons of investing in total market index funds

There are several benefits of investing in total market index funds, but there are also some negatives to keep in mind. Here are the pros and cons to consider:

Pros of total market index funds

  • Diversification: Through one security, you’re able to have a broadly diversified portfolio across market caps and investment styles.
  • Low fees: These funds are relatively easy to find with very low expense ratios, meaning you’ll likely pay just a few dollars for every $10,000 you have invested.
  • Very little research needed: Because these funds seek to match the performance of the entire stock market, you won’t need to spend time researching which sectors or companies are likely to outperform.
  • Earn long-term equity returns: By purchasing a total market fund, you’ll be able to achieve that region’s long-term stock market return as long as you’re able to stay invested.
  • Quickly add geographic exposure: These funds are also a great way to add a new geography to your portfolio quickly and without much effort.

Cons of total market index funds

  • Growth is limited: Your returns are limited to the overall stock market and aren’t likely to vary much by picking different total market funds.
  • Downside of broad diversification: Because these funds are invested so broadly, you’ll miss out on outsized gains when a particular segment of the market does well. If small-caps outperform in a major way, a total market fund is likely to lag.
  • Hard to stay disciplined: Investing in total market index funds can be a bit boring, even if it is a very sensible way to invest. Boring strategies can sometimes be difficult to stick to especially when other areas are performing better.

Bottom line

Total market index funds are a great way for investors to access a broadly diversified portfolio of stocks at very low cost. Index funds in general have been found to outperform actively managed funds in part due to their low fees. Consider making a total market mutual fund or ETF a core part of your long-term investment plan.

Learn more:

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

Sours: https://www.bankrate.com/investing/best-total-stock-market-index-funds/

Is Vanguard Total Stock Market ETF a Buy?

If you've ever wanted to order everything on a menu or hit a horse-racing track looking to place a wager on all of the thoroughbreds, an index fund may be right for you. A single investment buys you a basket of stocks, and the only real research you need to dive into is deciding what basket you want to buy.

Vanguard Total Stock Market ETF(NYSEMKT:VTI) is smart choice, giving investors a way to ride the entire market at a refreshingly low expense ratio. It's also undeniably popular. Vanguard Total Stock Market ETF had $725.8 billion in assets at the end of July. Let's look at the reasons to buy the widely owned exchange-traded fund, but also size up some of the reasons some investors might want to stay away.

ETF letters on raised tiles.

Image source: Getty Images.

Reasons to buy

Vanguard Total Stock Market ETF is designed to track the CRSP US Total Market Index, a gauge that tracks nearly 100 of the country's investable equity market across all capitalizations. We're talking about nearly 3,654 different stocks, giving investors a widely diversified portfolio in the flick of a buy order execution. 

This is a market-weighted index, so it's not as if each of the 3,654 stocks takes up roughly 0.03% of the portfolio. The 10 largest holdings -- the country's 10 largest-cap stocks -- take up a hearty 18.2% of the ETF. In short, you're never entirely immune from a large-cap stock imploding.  

The Vanguard name has become synonymous with low-fee index funds, and that's just what we have here with a mere 0.04% expense ratio for Vanguard Total Stock Market ETF. It's a great way to buy into the general market without having to dedicate time to researching and tracking individual stocks, but it's not perfect. 

Reasons to stay away

If you're thinking that Vanguard Total Stock Market ETF has set the floor on general market funds, you would be wrong. Schwab U.S. Broad Market ETF(NYSEMKT:SCHB) investors shell out just 0.03% in annual expenses. That may seem like a rounding error now, but even the smallest of expense ratio differences can make a difference over time. 

The two funds aren't identical. Schwab's ETF tracks the Dow Jones U.S. Broad Stock Market Index, following just 2,427 stocks. This is 1,227 fewer names than Vanguard's entry, though at that point we're talking mostly about tiny micro caps that don't really move the needle. If you happen to have your brokerage account at Schwab, the fund also happens to be part of the 250 ETFs offered without commissions, putting more of your money to work on Schwab U.S. Broad Market ETF than Vanguard Total Stock Market ETF.

Both ETFs are solid choices, but neither one may be right for you. The two funds own only stateside companies. Vanguard Total Stock Market ETF has just 0.1% of its portfolio in foreign holdings. The concentration limits exposure to overseas markets, though naturally, many of these successful stateside business are drumming up healthy sales internationally. If you want to truly spread out your investment risk, you may want to add an international ETF to your arsenal, or find a global ETF that spans the globe. Beyond participating in the successes of overseas markets, diversifying globally also limits the sting when the U.S. market eventually corrects or retreats.

Vanguard Total Stock Market ETF is a quality investment, but it's not the only option you as an investor should be considering.

Sours: https://www.fool.com/investing/2018/08/29/is-vanguard-total-stock-market-etf-a-buy.aspx

Return vanguard etf total

VTI

Vanguard Total Stock Market ETF

This ETF offers broad exposure to the U.S. equity market, investing in thousands of different securities across all sectors. That makes VTI an appealing option for investors looking to simplify their portfolios and minimize rebalancing obligations, as this fund can serve as a core holding of a long-term portfolio. VTI can potentially be useful as a tool for establishing quick exposure to risky assets, though most shorter-term traders with that objective will gravitate towards products such as SPY instead. One of the most attractive aspects of VTI, in addition to the extremely broad base of holdings and balance of exposure, is the price. This ETF is one of the cheapest products available, and the ability to trade commission free within a Vanguard account further increases the appeal to cost-conscious investors. For those looking to minimize fees, VTI will fit right into a portfolio. One attribute worth noting, however, is the tilt towards large caps. While VTI includes companies of all sizes, the allocations to mid caps and small caps are not significant. Those seeking more balanced exposure to U.S. equities may want to use VTI alongside more targeted products focusing on smaller companies.

Sours: https://etfdb.com/etf/VTI/
THE ONLY STOCK YOU NEED TO INVEST IN 2021 - VTI and Index Funds

The 4 Best Total Market Index Funds

A total stock market index fund is an investment vehicle that contains a basket of stocks within a mutual fund or exchange traded fund (ETF) that tracks an equity index. An equity index contains numerous stocks across various industries designed to represent the performance of the overall equity market. However, investors can't buy an index directly, but instead, can invest in a fund that mirrors a broad-based index, such as the Russell 3000 Index, the S&P 500, or the Wilshire 5000 Total Market Index.

By investing in stocks linked to a given index—called a benchmark—a total market index fund's performance aims to mirror the equities within the underlying. The stocks within these funds may include those issued by large, well-known corporations and stocks of smaller, lesser-known companies.

In this article, we highlight four of the most prominent total market index funds, including their one-year performance, investment minimums, and the expense ratio for each of the funds.

Key Takeaways

  • A total stock market index fund is an investment vehicle that contains a basket of stocks within a fund that tracks an equity index.
  • The major broad-based indexes used as benchmarks include the Russell 3000, the S&P 500, and the Wilshire 5000 Total Market Index.
  • The best total market index funds by popularity include the Vanguard Total Stock Market Index Admiral Shares (VTSAX), the Schwab Total Stock Market Index Fund (SWTSX), the iShares Russell 3000 (IWVB), and the Wilshire 5000 Index Investment Fund (WFIVX).

The Vanguard Total Stock Market Index Admiral Shares (VTSAX)

The Vanguard Total Stock Market Index Admiral Shares (VTSAX) seeks to track the investment results of the CRSP U.S. Total Market Index. The fund is designed to provide investors exposure to the entire U.S. equity market, which includes small, mid-sized, and large companies. The fund's goal is to provide a low-cost, broad exposure to the equity markets by investing in companies that primarily trade on the New York Stock Exchange (NYSE) and NASDAQ.

Some of the characteristics of the fund include:

  • Total net assets: $1.2 trillion
  • One year return: 51.05% as of April 30, 2021
  • Expense ratio: 0.04% as of April 29, 2021
  • The VTSAX has a $3,000 minimum investment requirement

For those who can't meet the $3,000 initial investment requirement, Vanguard also offers an exchange traded fund (ETF) called the Vanguard Total Stock Market ETF (VTI). The ETF version is similar to the VTSAX and costs the price of one share.

Equity Sector Diversification

Below are the weightings of the major industries within the VTSAX portfolio:

  • Technology companies: 25.50%
  • Consumer discretionary: 16.40%
  • Industrials: 14.20%
  • Healthcare companies: 13.10%
  • Financial services: 11.90%

Stock Holdings

The Vanguard Total Stock Market Index Admiral Shares is considered a large-cap blend, evidenced by some of its top 10 holdings, which make up 22.10% of the fund as of March 31, 2021:

  • Apple, Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Amazon.com (AMZN)
  • Alphabet Inc. (GOOG)
  • Facebook Inc. (FB)
  • Tesla Inc. (TSLA)
  • JPMorgan Chase & Co. (JPM)

The Schwab Total Stock Market Index (SWTSX)

The Schwab Total Stock Market Index (SWTSX) tracks the total return of the entire U.S. equity market as measured by the Dow Jones U.S. Total Stock Market Index. The fund is designed to be a comprehensive blend of large, small, and mid-sized corporations. The SWTSX has a low cost with no investment minimum.

Some of the characteristics of the fund include:

  • Assets under management: $15.90 billion
  • One year return: 50.94% as of April 30, 2021
  • Expense ratio: 0.03%
  • Investment minimum: None

Equity Sector Diversification

Below are the weightings of the major industries within the SWTSX as of March 31, 2021:

  • Technology: 25.76%
  • Healthcare: 13.45%
  • Consumer discretionary: 12.34%
  • Financial services: 11.79%
  • Communication services: 10.00%

Stock Holdings

The SWTSX's top 10 holdings comprise approximately 20% of the portfolio and include the following as of March 31, 2021:

  • Apple, Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Amazon.com (AMZN)
  • Facebook Inc. (FB)
  • Alphabet Inc. (GOOGL)
  • Tesla Inc. (TSLA)
  • JPMorgan Chase & Co. (JPM)

The iShares Russell 3000 ETF (IWV)

The iShares Russell 3000 (IWV) by BlackRock Inc. is an exchange-traded fund (ETF) that tracks the performance of the Russell 3000 Index, which measures the investment results of the broad U.S. equity market. Like its peers, IWV uses an indexing approach to select a sample of stocks that represent the underlying benchmark.

Some of the characteristics of the fund include:

  • Assets under management: $11.50 billion
  • One year return: 50.63% as of April 30, 2021
  • Expense ratio: 0.20%
  • Investment minimum: None

Equity Sector Diversification

IWV's sector allocations are similar to those of the Vanguard and Schwab funds. As of May 10, 2021, the top industries within the IWV include:

  • Technology: 22.74%
  • Healthcare: 13.42%
  • Financial services: 12.25%
  • Consumer discretionary: 12.16%
  • Communication services: 9.98%

Stock Holdings

Similar to the previous two funds, the IWV also has more than 20% of its assets weighted in its top 10 holdings as of May 10, 2021. Some of those holdings include:

  • Apple, Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Amazon.com (AMZN)
  • Facebook Inc. (FB)
  • Alphabet Inc. (GOOGL)
  • Tesla Inc. (TSLA)
  • JPMorgan Chase & Co. (JPM)

Small stocks listed in a total market index fund are often thinly traded, which may result in high trading spreads and significant transaction costs.

The Wilshire 5000 Index Investment Fund (WFIVX)

The Wilshire 5000 Index Investment Fund (WFIVX) is a mutual fund that tracks the investment results of the Wilshire 5000 Index, a capitalization-weighted index of the market value of all actively traded U.S.-headquartered stocks. The index typically holds more than 3,500 stocks.

Some of the characteristics of the fund include:

  • Assets under management: $224 million
  • One year return: 48.88% as of April 30, 2021
  • Expense ratio: 0.63%
  • Investment minimum: $1,000

Equity Sector Diversification

The sector allocations for the WFIVX as of March 31, 2021 include:

  • Technology: 24.97%
  • Healthcare: 13.03%
  • Consumer discretionary: 12.33%
  • Financial services: 11.83%
  • Communication services: 9.79%

Stock Holdings

Similar to the previous funds, the WFIVX also has more than 20% of its assets weighted in its top 10 holdings as of March 31, 2021. Some of those holdings include:

  • Apple, Inc. (AAPL)
  • Microsoft Corp. (MSFT)
  • Amazon.com (AMZN)
  • Alphabet Inc. (GOOG)
  • Facebook Inc. (FB)
  • Tesla Inc. (TSLA)
  • JPMorgan Chase & Co. (JPM)
Comparing 4 Total Stock Market Index Funds
Total Stock Market Index FundAssets Under ManagementOne Year ReturnExpense Ratio
Vanguard Total Stock Market Index Admiral Shares (VTSAX)$1.2 trillion51.05%0.04%
Schwab Total Stock Market Index (SWTSX)$15.90 billion50.94%0.03%
iShares Russell 3000 ETF (IWV)$11.50 billion50.63%0.20%
Wilshire 5000 Index Investment Fund (WFIVX)​$224 million48.88%0.63%

Total Stock Market Funds FAQs

What Is a Total Stock Market Index Fund?

A total stock market index fund is a mutual fund or exchange-traded fund (ETF) that tracks an equity index such as the Russell 3000 Index, the S&P 500, or the Wilshire 5000 Total Market Index, as its benchmark.

How Many Stocks Are in the Vanguard Total Stock Market Index Admiral Shares Fund?

The Vanguard Total Stock Market Index Admiral Shares Fund has more than 3,000 equity holdings.

How Do I Invest in a Total Market Index Fund?

Investors can invest in a total market index fund by opening a brokerage account that offers ETFs and index funds including the Vanguard Total Stock Market Index Admiral Shares Fund (VTSAX), the Schwab Total Stock Market Index Fund (SWTSX), the iShares Russell 3000 (IWVB), and the Wilshire 5000 Index Investment Fund (WFIVX).

What Companies Are in the Vanguard Total Stock Market Index Admiral Shares Fund?

With more than 23% of its portfolio invested in the technology sector, companies in the Vanguard Total Stock Market Index Admiral Shares fund (VTSAX) include Apple, Inc., Microsoft Corp., Amazon.com, Facebook Inc. A, and Alphabet Inc. A.

Sours: https://www.investopedia.com/articles/markets/101515/4-best-total-market-index-funds.asp

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Best Total Stock Market Index Funds

Comparing total stock market index funds can be like trying to distinguish between snowflakes. You’ve been told they are all unique, but they sure do look a lot alike. Ultimately, the most important factor is fees: The lower the fees, the higher the returns, at least for the most part. But above and beyond fees, there are several factors we considered in making our selections.

We considered how each fund sought to mirror the total stock market in the U.S. We excluded those funds that didn’t track the majority of U.S. equities, such as S&P 500 index funds. While the performance of these funds is highly correlated with total market funds, they exclude small and mid-cap stocks. As such, they can’t fairly be described as total market funds.

With one exception, the funds in our list track the Russell 3000 Index, the Dow Jones U.S. Total Market Index or the CRSP US Total Market Index. In our view, each of these is a reasonable approach to capturing the U.S. equities market.

We also included Fidelity’s ZERO fund, which uses a proprietary Fidelity index. It’s the first fund we’ve found that doesn’t charge an expense ratio. Whether it will outperform the other funds in our list over the long-term is still unknown given is short tenure.

Finally, we considered a fund’s minimum investment and most recent 12-month yield. While there was some variance among the funds that made our list, they all fell within a narrow range.

Sours: https://www.forbes.com/advisor/retirement/best-total-stock-market-index-funds/


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