(VTI) Vanguard Total Stock Market - Ratings and Ratios

The Vanguard Total Stock Market Index Fund ETF Shares (VTI) is a passively managed exchange-traded fund that tracks the performance of the US stock market, providing broad diversification across large-, mid-, small-, and micro-cap stocks. By employing a sampling strategy, the fund holds a representative collection of securities that replicates the key characteristics of the underlying index.

As a Large Blend ETF, VTI offers investors exposure to a vast segment of the US equity market, with a total assets under management (AUM) of approximately $502 billion. This substantial scale provides liquidity and helps minimize tracking error. With its broad diversification, VTI is a core holding for many investors, providing a low-cost and efficient way to gain exposure to the US stock market.

Some key performance indicators (KPIs) for VTI include its expense ratio, which is a crucial metric for investors. Vanguard is known for its low-cost structure, and VTI is no exception, with an expense ratio of 0.04%. Additionally, the funds tracking error, which measures its deviation from the underlying index, is typically very low. Other relevant KPIs include the funds dividend yield, which is around 2%, and its turnover rate, which is relatively low, indicating a buy-and-hold strategy.

From a portfolio management perspective, VTIs characteristics make it an attractive holding for investors seeking broad US equity exposure. Its low correlation with other asset classes, such as bonds or international equities, makes it a useful component in a diversified portfolio. Furthermore, VTIs sector allocation is generally representative of the overall US market, with a mix of technology, healthcare, financials, and consumer staples stocks.