Vanguard Total Stock Market ETF (VTI)

During times of market uncertainty, idex funds are the best bet for some stability in an otherwise unstatble time. Idex funds also a good idea for the long term as they follow the trend of the market or sector the index follows. This can give an investor, new to the game or an old hat, a nice steady return over time.

The Vanguard Total Stock Market IS the stock market... Unfortunately, with CAPS, we are rewarded only for beating the market (as we should be, as are our goals).

VTI is a good recommendation if you believe the US economy and US stock markets are on an ever increasing trend line.

With a $7.5 billion market capitalization and an exposure to the performance of 3,735 securities, closely emulating the MSCI US Broad Market Index, this ETF employs a passively managed approach. The ETF is constituted with a broad mix of value and growth stocks across the large, medium and small market capitalizations.

Financial services sectors occupies a major 22.5% share on the ETF followed by 15.3% of the IT sector while Healthcare, Consumer discretionary and Industrials hold 11%-12% each among others. Being a broad based ETF, the top ten companies make up for merely 15.28% share with Exxon Mobil holding 2.57% share, GE sharing 2.35% and Citigroup, Bank of America & Microsoft each holding 1.5%-1.75% each, among others.

Given the broad base of the ETF, it more or less emulates the movement of the US economy as a whole. As it owns more small caps in numbers, it may look a bit sluggish in the future if small stocks surrender the market leadership that they've enjoyed in recent past. This could turn out to be a major risk as small caps are not as strong to stand any headwinds in the economic scenario.

Despite an average 42% return in the past three years, the ETF managed to generate only 12.4% return over the past one year, which shows the signs of slowing economic growth. Though its expense ratio stands at an ultra-low of 0.07%, which makes it not only one of the lowest-cost ETFs in the large-blend category, but also one of the lowest-cost ETFs in existence, the economic downturn makes the fund a bit less investor friendly. Thus VTI turns out to be a less attractive investment proposition in the near term.

Unless you think we'll soon all be gathering nuts to horde in a post apocalyptic world, buying the market at these levels will pay off in the long term. Now, as the worst seems near, is when you 'buy low' to later 'sell high'. This is a great way to diversify your portfolio. While you get some poor performers, you get all the top performers. When someone says they own 'such and such' stock and made a killing, you can say you own it too, because you own them all! This ETF also has an ultra low expense ratio of .07%. You don't buy low at 52wk highs. Expect modest returns with this ETF, but overall long term gains. Be patient.

place holder - need 7 active picks at all times

AWSOME

This is a good ETF to get into in real life because of the low costs and other reasons people have mentioned, but it is not a good CAPS pick. Even if it does beat the market long term, it will only be by a hair. Despite picking this to overperform, I would not recommend that anyone else pick it if they are interested in doing well in CAPS. Of course if you are picking it for other reasons, pick on!

Low, low fees, fully-diverse US fund. Enough small caps to edge the the SP500.

Vangaurd has good ETFs, but I just don't see how a broad market ETF will out perform the S&P500 over the long run.

What can I say? Buffett, Boggle, can they be wrong? Value is the investing style that's applied by all the top guns in the field. If you know what I'm talking about, you'll know to keep a large long position here.

I think that the whole stock market is more powerful than all the large cap stocks in the s&p 500.

This is the market, so by definition it can't outperform, but it can't underperform either, so it's a safe bet that the market will rebound and with no "drag" (fees etc.) should produce a near market return.

Sell at strengh. (>46+)

Buy at weakness (<42)

This would be a good ETF to come back to each month and dollar cost average out. Along with its dividend, it tracks the total stock market which reduces risk.

A great time to buy into VTI --- at a 12-year low in the DJIA and S&P :D

We won't be in the toilet forever. That's all I can say for VTI right now. Probably will go lower before it reverses course, but once it does this is a great vehicle to enjoy the ride. LOW cost too, which means more bread in your product when it happens.

cheap right now and possibly could get a little more cheaper...i think it's a buy

Be the market.

The S&P 500 will recover eventually, and so VTI will as well.