Vanguard Total Stock Market Index Fund ETF Shares offers advantages over the S&P 500 due to mid and small-cap company inclusion. Besides lower valuation, a potential rate cuts could benefit the VTI ETF more than large cap funds like those indexed on S&P 500. In this case, mid and small-cap companies may see higher stock price increases due to their heavier reliance on debt and their better growth potential than large caps.
A solid combination of U.S. and international stocks could quickly diversify your portfolio. There are several smart ways to buy ETFs, including dollar-cost-averaging.
Fund past performance doesn't guarantee future results. S&P 500 index funds may outperform total market funds. Vanguard S&P 500 ETF is preferred over Vanguard Total Stock Market Index Fund ETF Shares due to better performance and exposure to top-performing companies.
US stocks experienced a minor correction in April, with a 6.3% dip in the Vanguard Total Stock Market Index Fund ETF. Earnings growth has outperformed expectations, particularly in the tech sector, leading to optimism for future earnings for both large- and SMID-cap companies. The summer season is historically bullish for stocks, and the current presidential election cycle suggests a strong period for US stock allocation.
Vanguard Total Stock Market ETF is a massive fund with $1.5 trillion in net assets. VTI follows a total market approach but skews towards large cap holdings, resulting in a return profile similar to the S&P 500. The fund may be a compelling option for investors with a positive outlook on the broad market and economy.
The Vanguard Total Stock Market ETF offers comprehensive exposure to the entire U.S. market. The ETF is highly popular and widely traded, with a monolithic $1.5 trillion of assets under management.