Vanguard Total Stock Market ETF (VTI)

What is VTI?

VTI tracks the CRSP US Total Market Index, which includes large-, mid-, small- and micro-cap US companies rather than just the 500 largest. It is an ETF share class of Vanguard's Total Stock Market Index Fund, aiming to represent nearly the entire investable US equity market in one fund.

How VTI compares

Unlike VOO, IVV and SPY, which track only the S&P 500's large-cap companies, VTI adds exposure to thousands of smaller US companies. Over most periods its performance is closely correlated with the S&P 500, since large-cap stocks make up the majority of total US market value, but the two are not identical.

Risks and considerations

VTI carries the same broad US equity market risk as other diversified stock funds, and its small- and micro-cap holdings can be more volatile than the large-cap companies that dominate the S&P 500. The fund offers no international exposure and no guarantee against loss.

Long-term investing considerations

VTI is often used as a single-fund core holding for US equity exposure because of its broad coverage. As with any equity fund, consider how it fits alongside international stocks, bonds and other asset classes, and test a range of return assumptions in any long-term plan.