Sell VTI And Buy VBR To Diversify
Vanguard Total Stock Market Index Fund ETF offers broad exposure but remains heavily weighted to large-cap stocks (technology), limiting true diversification. VTI's performance closely tracks large-cap ETFs like VOO, with both outperforming small-cap benchmarks such as IWM over recent years. Vanguard Small-Cap Value Index Fund ETF provides better diversification, lower tech exposure, and a low expense ratio but is rated Hold due to valuation concerns.
Dimensional Widens Bridge Between ETFs & Mutual Funds
On the same day of the five-year anniversary of Dimensional entering a competitive, rapidly evolving exchange traded fund business, the active ETF provider received an approval notice from the SEC granting the firm exemptive relief to offer dual share class funds. Their timing couldn't be more auspicious.
VTI: Expecting A Year-End Rally After The November Shakeout (Upgrade)
Vanguard Total Stock Market ETF is upgraded to a "Buy," citing strong long-term fundamentals and recent price reset. VTI benefits from broad diversification, low expenses, and high liquidity, despite a weak start to November and elevated valuations. Seasonal trends and contrarian sentiment suggest a potential year-end rally, especially around Thanksgiving and December.
VTI May Be The Next Winner As Market Concentration Peaks
Vanguard Total Stock Market Index Fund ETF offers broad US market exposure, with ≈3,600 firms, balancing mega-cap concentration and diversification. VTI's lower tech concentration and inclusion of mid/small/micro caps reduce risk and provide better cyclical exposure compared to the S&P 500. While VTI's historical returns slightly lag peers, its diversified portfolio positions it to benefit from potential market rotation toward smaller caps as interest rates fall.
2 Defensive ETFs Beating the VTI This Year
It's not easy to beat the incredibly popular Vanguard Total Stock Market Index Fund ETF (NYSEARCA:VTI), an ETF that's even broader than the S&P 500, in any given year.
VTI Vs. IJR: The Case For A Concentrated Small-Cap Bet
Small-cap stocks, represented by iShares Core S&P Small-Cap ETF, are valued near a cyclical bottom relative to large-cap funds such as Vanguard Total Stock Market Index Fund ETF Shares. IJR historically offered a compelling size premium and competitive growth compared to mega-cap-heavy indices like VTI and QQQ. The size premium turned negative around 2019 and has stayed negative since then.
Is The Vanguard Total Stock Market Index Fund a Buy?
The Vanguard Total Stock Market ETF (VTI 0.64%) might be the most boring investment on Wall Street -- and that's exactly why it works. While hedge funds chase the next big thing and retail traders bet on meme stocks, this exchange-traded fund (ETF) quietly delivers the entire U.S. stock market for 3 basis points.
VTI: Bearish Seasonality Looms As U.S. Stocks Trade Above 23x Earnings
I reiterate a hold rating on VTI, as valuations above 23x earnings and bearish seasonality warrant caution despite recent market resilience. U.S. stocks have outperformed ex-U.S. equities, boosted by strong earnings sentiment and a robust dollar, but consolidation after significant gains is likely. Technical analysis shows a bullish breakout with a potential VTI target near $370, yet high-volume support around $300 offers downside cushion.
I’m Only 26 And Getting A $4.7m Inheritance But Don’t Know What To Do
One of the most challenging things to process in anyone’s financial life can be the sudden windfall of a life-changing amount of money. Whether it’s because of a lottery or inheritance, if you receive enough money to turn your life upside down completely, it can be difficult to manage. Key Points This Redditor is in a unique position, inheriting significant wealth. There is no question this Redditor needs to talk to someone about how to handle their emotions. The hope is that this Redditor can create significant wealth for retirement. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor) For one Redditor posting in r/personalfinance, this is all too true, as they knew they would receive some money from a grandparent but not the exact amount they were expecting. Looking to inherit upwards of $700,000 with millions more on the way, this Redditor has to make some quick financial decisions. Suddenly Very Comfortable For a Redditor accustomed to earning $65,000 per year in a high-cost-of-living city, inheriting $700,000 at 26 years old is life-changing. Even if the Redditor made more money or lived elsewhere, it’s still a considerable amount of cash. What’s more notable is not just the initial inheritance, but also the expectation to receive around $4 million more as beneficiaries of other investments. Wait, there’s more, as other relatives will take advantage of the annual gift exclusion and likely present the Redditor with anywhere between $50,000 and $100,000 per year in gifts. As someone who is generally living month to month, spending $3,500 out of a take-home pay of $3,500, it’s not surprising the Redditor is feeling overwhelmed. The amount of money aside for a moment, they are struggling with the emotional side of losing a grandparent, all while being surprised with an inheritance far greater than expected. The hope is that they can find someone who can help them, who isn’t related or associated with any family, to figure out how to manage this money best. They know this isn’t enough to secure a dedicated, big-money advisor, but there is no question that this money requires professional management, especially if they don’t know how to manage it on their own. What To Do Next At the very top of the list of what to do next is not to tell anyone. Outside of family who already know what’s taking place, this Redditor shouldn’t tell anyone at all what is taking place. There is mention of a spouse or partner, so assuming someone else doesn’t exist, they shouldn’t disclose financial information to anyone. Even if a new love affair enters their life, they should keep the financial situation private until the relationship progresses to a point where it appears to be permanent. Any indication that you received a sudden windfall is likely to prompt family members who didn’t receive money and friends who haven’t spoken to you in a while to come out and ask for help. Aside from not telling anyone, this Redditor also needs an opportunity to grieve. They need to come to terms with everything taking place emotionally, including the death of a loved one and the sudden windfall. There is every reason to think that a therapist would be a good person to speak with, at least for a little while, to help the Redditor come to terms with these life-changing moments. Don’t Overspend The Redditor also mentions using some of the money to update their lifestyle, but I would advise against it, as would a financial advisor. Yes, you can look to use some of the money to buy a home, but a new sports car or a sudden new wardrobe is a waste. At 26, this money can be life-changing in retirement, even if no other money arrives. Let’s say the Redditor wants to spend $50,000 on miscellaneous purposes, such as a vacation, lifestyle enhancements, and a healthy emergency savings fund. With $650,000 invested at a conservative 6% annual interest rate, this amount would now be $3.7 million after 30 years. Add in the potential for the other millions they could inherit, and all of a sudden, you have a far more comfortable retirement. The bottom line is that the Redditor should consult a fiduciary financial planner to determine the next step. Whether that involves putting the money into VTI as they suggest and simply holding it, or spreading it out in a diverse portfolio, consulting a professional is the best approach. The post I’m Only 26 And Getting A $4.7m Inheritance But Don’t Know What To Do appeared first on 24/7 Wall St..
VTI: Beyond Recent Underperformance - Broader Markets
VTI offers broad US market exposure, but remains large-cap heavy, leading to performance closely tracking SPY. VTI underperforms SPY during narrow, mega-cap-led rallies and market panics, but outperforms in broad-based rallies and periods of lower rates. Despite recent underperformance, VTI historically outperformed SPY pre-COVID and remains a strong long-term core holding for diversification.
Building A Better VTI: Why Combining U.S. Large Cap And U.S. Small-Cap Value Makes More Sense
VTI's broad exposure includes many underperforming small-cap growth stocks, diluting long-term returns and factor purity. Replacing VTI with a VOO + AVUV blend improves performance by targeting proven equity drivers while cutting out low-quality small caps. Small-cap value has historically delivered stronger CAGR and risk-adjusted returns than total small-cap or small-cap growth segments.
VTI Vs. SCHG: SCHG's Growth Is Attractively Priced
Recent trade disputes have caused substantial market volatility and shifted the risk premiums of various sub-sectors. These changes prompt a fresh comparison between VTI (total market) and SCHG (large-cap growth). SCHG has historically outperformed VTI, with higher returns but also greater volatility and concentration risk.
