1 Unstoppable Vanguard ETF to Buy With $630 During the S&P 500 Sell-Off

Core Viewpoint - The article emphasizes the advantages of investing in low-cost, broad-market index funds, particularly the Vanguard Total Stock Market Index Fund, as a strategy for retail investors seeking long-term returns in a market increasingly dominated by large-cap technology stocks driven by artificial intelligence [1][2][4]. Group 1: Index Fund Overview - Vanguard pioneered the offering of diversified index funds to the public in 1976, becoming a major player in providing low-cost investment options [2]. - The Vanguard Total Stock Market Index Fund (VTI) tracks the entire U.S. stock market, including large-, mid-, small-, and micro-cap stocks, making it a comprehensive investment vehicle [6]. Group 2: Market Dynamics - Technology stocks, particularly those related to AI, have seen significant valuation increases, leading to a concentration in major indexes like the Nasdaq-100 and S&P 500 [3][4]. - The disparity in valuations between large-cap tech stocks and smaller stocks in other sectors is notable, suggesting potential opportunities in undervalued areas of the market [5]. Group 3: Fund Performance and Characteristics - The VTI has a weighted average price-to-earnings ratio of 27.2 and a dividend yield of 1.14%, with a year-to-date performance increase of 13.9% [9]. - The fund's expense ratio is exceptionally low at 0.03%, making it an attractive option for cost-conscious investors [9]. Group 4: Investment Strategy - The VTI serves as a balanced option for investors who are optimistic about AI technology but cautious about the high valuations of tech stocks, allowing for diversified exposure across various sectors [10]. - Historical trends indicate that during market corrections, value stocks in other sectors can outperform, reinforcing the case for a diversified investment approach [8].