Founded in by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. VTSMX is designed to provide investors with exposure to the entire U.

The index fund holds a total of 3, different stocks, with higher weights given to larger companies. Here's what you should know about this broad index fund and why it could be a great addition to your long-term portfolio. As the name implies, this fund is designed to give investors exposure to the entire U. Although the fund is diversified among 3, U.

Vanguard - Product overview - Total Stock Market ETF

Rather, it is weighted to give more exposure to larger companies. As of March 31, , the largest 10 holdings made up The most compelling reason is that the Vanguard Total Stock Market Index Fund gives you exposure to the entire U.

VTI Vanguard Total Stock Market ETF ETF VTI Quote Price News

You may have heard that stocks have historically outperformed all other asset classes over long periods of time, and this is true. The main point of investing in a fund like this is to capture that excellent long-term performance without having to choose individual stocks or buy index funds that focus on a single type of stock.

Since its inception in , the fund has averaged an annual return of 9. So, while I wouldn't suggest this fund for short-term investors, those who have held the Vanguard Total Stock Market Index Fund for the long haul have been handsomely rewarded.

VTI : Summary for Vanguard Total Stock Market ETF - Yahoo Finance

In addition, the fund's expense ratio of 0. So you'll be able to keep more of your profits than with other total-market funds.

Obviously, if you're looking to beat the market, the Vanguard Total Stock Market Index Fund isn't for you. By definition, you'll simply match the market's performance and nothing more. However, if you want to put your stock portfolio on autopilot and take advantage of the compounding power of the stock market -- which has outperformed every other asset class over long time periods -- you might want to consider this fund for a major part of your investment strategy.

Matthew Frankel owns shares of GOOG, AAPL, T, and BRK-B. The Motley Fool owns shares of and recommends GOOG, GOOGL, AMZN, AAPL, BRK-B, FB, and JNJ. The Motley Fool owns shares of XOM, GE, and MSFT and has the following options: Try any of our Foolish newsletter services free for 30 days.

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Matt brought his love of teaching and investing to the Fool in in order to help people invest better. Matt specializes in writing about the best opportunities in bank stocks, REITs, and personal finance, but loves any investment at the right price. Follow me on Twitter to keep up with all of the best financial coverage! Skip to main content The Motley Fool Fool.

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