ETF Breakout: Vanguard Total Stock Market Fund (VTI)

Stock Market Dec 31, 2020

The Vanguard Total Stock Market ETF (VTI) covers the entire U.S. stock market (market cap weighted). With a extremely small expense ratio, it has become one of the most popular ETFs in history with over $1 trillion in total net assets.

VTI Chart by TradingView


Key stats

  • Class – Domestic/Large Blend
  • Expense ratio – 0.03%
  • Number of stocks – 3,586
  • Concentration of top 10 – 23.1%
  • 10 year avg return – 14.04% (30 day below)
  • Price/Earnings raito – 27.7x

VTI Price Today by TradingView


Distribution

Key to understanding any fund is its distribution across both industries and individual stocks. With the recent runup in key technology companies, the top 10 stocks now make up a mind blowing 23% of the entire stock market. In other words, 1 in every 4 dollars – meaning fluctuations in these giants will be felt across the entire market.

Top 10 Companies23.1%
Apple5.0%
Microsoft4.4%
Amazon3.7%
Alphabet2.8%
Facebook1.8%
Berkshire Hathaway1.2%
Tesla1.2%
Johnson & Johnson1.0%
JPMorgan Chase & Co1.0%
Visa1.0%

We can also consider its sector diversification. Here too it becomes very clear that the technology sector has grown far faster than the entire economy – representing 23.2% of VTI. Consumer discretionary, health care, and industrials round out the top 4 sectors that have an outsized impact on this fund.

Sector Diversification100%
Basic Materials2.1%
Consumer Discretionary16.4%
Consumer Staples5.3%
Energy2.3%
Financials10.4%
Health Care13.5%
Industrials13.8%
Real Estate3.4%
Technology26.2%
Telecommunications3.5%
Utiliities3.1%

Past Performance

As a fund that is reflective of the entire market, nothing here should be a surprise. Notably though, while you see trends reflective of market conditions you will see a relatively smooth line that doesn’t have the dynamic volatility on individual stocks or even sectors – illustrating the advantages that over 3,600 stocks bring.

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