Core Insights - The Vanguard Total Stock Market ETF (VTI) is highly diversified, tracking the CRSP U.S. Total Market Index, which includes every stock listed on American exchanges [1][2] - The ETF provides exposure to a wide range of companies, from large tech giants like Nvidia to smaller firms with market capitalizations under $1 billion [2] - The ETF has delivered a compound annual return of 8.9% since its inception in 2001, with a more accelerated average annual return of 12.9% over the last decade [9][10] Diversification and Holdings - The Vanguard Total Stock Market ETF holds 3,555 stocks across 11 sectors, with the technology sector being the largest at 34.5% [5] - The top 10 holdings are predominantly tech companies, with Microsoft, Nvidia, and Apple making up a combined 16.8% of the ETF's portfolio [6][7] - The ETF's structure allows for a lesser influence from major tech stocks compared to their representation in the S&P 500 and Nasdaq-100, which may limit potential upside but includes many smaller, high-quality companies [8][11] Investment Potential - Investing $1,000 per month in the ETF could potentially grow to $500,000 in under 20 years, depending on the average return rate [9][10] - The ETF is considered a complete portfolio option, allowing investors to build long-term wealth through consistent contributions without needing additional investments [11][12]
1 Spectacular Vanguard ETF That Could Turn $1,000 Per Month Into $500,000 in Under 20 Years
The Motley Foolยท2025-07-10 08:10