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Buying a broadly diversified portfolio of stocks (including international stocks) with VTI and VXUS can offer peace of mind for long-term investors.
DMC Group LLC bought a new position in Vanguard Total Stock Market ETF (NYSEARCA:VTI) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,147 shares of the ETF's stock, valued at approximately $794,000. A number
The S&P 500 has delivered 593% total return since September 2011 and 10% annualized returns since 1928. The Vanguard Morningstar Total Stock Market ETF holds 3,515 U.S. stocks of all sizes, including the S&P 500.
The S&P 500 tracks the 500 largest U.S. stocks on the market, while VTI holds virtually all U.S. stocks. The S&P 500 and VTI share many top holdings, but the S&P 500 is more concentrated.
Auto-enrollment handed you a default fund at 25 and you never looked back, but the investment your employer chose for you may already be working against your timeline and draining returns you will never recover.
VTI offers broad market exposure, reducing the risk of individual stock investments. Short-term fluctuations are expected, but that doesn't mean a fund can't come roaring back.
It's understandable to be nervous about high stock valuations. But long-term investors can breathe easy.
The Vanguard Morningstar Total Stock Market ETF and the Schwab U.S. Broad Market ETF both feature a low 0.03% expense ratio. The Vanguard fund holds roughly 1,200 more stocks than the Schwab fund, providing deeper exposure to small-cap companies.