Key Points
Many investors mistakenly believe they have a diversified portfolio, yet they often lack true sector and market capitalization diversity. The Vanguard Total Stock Market ETF (NYSEMKT: VTI) can provide instant diversification by tracking the CRSP U.S. Total Market Index, which covers the entire investable universe of U.S. stocks.
Currently, the fund holds over 3,500 stocks, far exceeding the S&P 500’s 500 companies. Its top holding is Nvidia, making up 6.4% of its assets. The ETF’s annualized return since inception in 2001 stands at 8.9%, with a $10,000 investment potentially growing to over $84,000 in 25 years at that rate.
With an expense ratio of just 0.03%, the Vanguard Total Stock Market ETF offers low-cost access to robust returns, making it a compelling option for investors looking to enhance their portfolio’s diversity and performance.
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