Core Viewpoint - The Vanguard Total Stock Market ETF is highlighted as an ideal long-term investment option due to its broad market coverage and ultra-low expense ratio, making it suitable for various investment goals [1][10]. Group 1: ETF Characteristics - The Vanguard Total Stock Market ETF tracks the CRSP US Total Market Index, encompassing approximately 3,500 individual stocks across large, mid, small, and micro-cap categories, providing comprehensive market exposure [4]. - The ETF charges an expense ratio of just 0.03%, positioning it as one of the most cost-effective investment options available [10]. Group 2: Market Performance and Trends - In 2026, the Russell 2000 index, representing small-cap stocks, outperformed the S&P 500 for 14 consecutive trading days, a phenomenon not seen in 30 years, indicating a shift in market dynamics favoring diversification [7]. - The Vanguard Total Stock Market ETF is currently outperforming due to its diverse sector allocation, contrasting with the large-cap universe heavily weighted towards technology stocks [8]. Group 3: Investment Strategy - A more comprehensive portfolio, such as that offered by the Vanguard Total Stock Market ETF, includes around 25% of stocks that are not large caps, allowing for diversification and potential resilience against market fluctuations [6]. - The ETF is recommended as a "set it and forget it" fund, suggesting that long-term investment could yield significant returns with minimal effort [10].
This "Set It and Forget It" ETF Could Make You a Multimillionaire With Almost No Effort
The Motley Fool·2026-02-09 02:32