Vanguard Total Stock Market Index Fund ETF Shares (VTI)

ETF Vanguard Total Stock Market Index Fund ETF Shares (VTI): Overview

Profile:

VTI is a passively managed ETF that tracks the CRSP US Total Market Index. It aims to provide broad exposure to the entire U.S. stock market, covering approximately 100% of investable U.S. equities. It achieves this by holding a large and diversified portfolio of stocks across various sectors, market capitalizations, and industries.

Objective:

The primary investment goal of VTI is to track the performance of the U.S. total stock market as closely as possible, before fees and expenses. This makes it a suitable choice for investors seeking long-term capital appreciation and diversification across the entire U.S. equity market.

Issuer:

Vanguard Group:

• Reputation and Reliability: Vanguard is a highly reputable and reliable investment management firm with a long and successful track record. As of June 30, 2023, Vanguard manages over $8.5 trillion in assets globally.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in index investing and quantitative analysis.

Market Share:

VTI is the largest and most popular U.S. total stock market ETF, with a market share of approximately 35% in its category as of June 30, 2023.

Total Net Assets:

As of June 30, 2023, VTI has over $350 billion in total net assets.

Moat:

• Low-cost structure: VTI has a low expense ratio of 0.03%, making it one of the most affordable ways to gain broad exposure to the U.S. stock market.
• Diversification: VTI's vast portfolio provides built-in diversification, reducing portfolio risk compared to individual stock picking.
• Transparency: VTI's holdings are publicly available, allowing investors to easily understand the ETF's composition.

Financial Performance:

Historically, VTI has closely tracked the performance of the U.S. total stock market, with an average annual return of around 10% over the past 10 years. It has outperformed the majority of actively managed mutual funds in its category.

Benchmark Comparison:

VTI's performance closely aligns with its benchmark, the CRSP US Total Market Index, demonstrating its effective tracking ability.

Growth Trajectory:

VTI has experienced consistent growth in assets under management over the years, reflecting its popularity among investors seeking broad market exposure.

Liquidity:

• Average Trading Volume: VTI has a high average trading volume, making it highly liquid and easy to buy or sell.
• Bid-Ask Spread: The bid-ask spread for VTI is typically tight, indicating low transaction costs.

Market Dynamics:

• Economic Indicators: VTI's performance is influenced by various economic indicators, including GDP growth, inflation, and interest rates.
• Sector Growth Prospects: The performance of different sectors within VTI can vary depending on their growth prospects.
• Current Market Conditions: Market volatility and investor sentiment can impact VTI's short-term performance.

Competitors:

• iShares CORE S&P Total US Stock Market ETF (ITOT): Market share of approximately 15%
• SPDR S&P Total Market ETF (SPY): Market share of approximately 10%

Expense Ratio:

VTI has an expense ratio of 0.03%.

Investment Approach and Strategy:

• Strategy: VTI passively tracks the CRSP US Total Market Index.
• Composition: VTI holds a diversified portfolio of over 4,000 stocks across various sectors, market capitalizations, and industries.

Key Points:

• VTI offers low-cost, diversified exposure to the entire U.S. stock market.
• It has a proven track record of closely tracking the market.
• VTI is highly liquid and easy to trade.

Risks:

• Market Risk: VTI's value is subject to market fluctuations, including potential losses during market downturns.
• Interest Rate Risk: Rising interest rates can negatively impact stock market performance.
• Volatility Risk: VTI's value can experience significant swings, especially during periods of market uncertainty.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and broad market exposure.
• Investors with a buy-and-hold investment strategy.
• Investors comfortable with market volatility.

Fundamental Rating Based on AI:

8.5/10

VTI receives a high AI-based fundamental rating due to its strong track record, low expense ratio, and superior liquidity. The AI analysis acknowledges VTI's market-leading position and its ability to consistently deliver returns in line with the U.S. stock market.

Resources and Disclaimers:

This analysis is based on data from the following sources:

• Vanguard Group website
• Morningstar
• Bloomberg

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.