ETF Breakout: Vanguard Total Stock Market Fund (VTI)

Originally published at: ETF Breakout: Vanguard Total Stock Market Fund (VTI)

The Vanguard Total Stock Market ETF (VTI) covers the entire U.S. stock market (market cap weighted). With a extremely small expense ratio, it has become one of the most popular ETFs in history with over $1 trillion in total net assets. VTI Chart by TradingView Key stats Class – Domestic/Large BlendExpense ratio – 0.03%Number of stocks – 3,586Concentration of top 10 – 23.1%10 year avg return – 14.04% (30 day below)Price/Earnings raito – 27.7x VTI Price Today by TradingView Distribution Key to understanding any fund is its distribution across both industries and individual stocks. With the recent runup in key technology companies, the top 10 stocks now make up a mind blowing 23% of the entire stock market. In other words, 1 in every 4 dollars – meaning fluctuations in these giants will be felt across the entire market. Top 10 Companies23.1%Apple5.0%Microsoft4.4%Amazon3.7%Alphabet2.8%Facebook1.8%Berkshire Hathaway1.2%Tesla1.2%Johnson & Johnson1.0%JPMorgan Chase & Co1.0%Visa1.0% We can also consider its sector diversification. Here too it becomes very clear that the technology sector has grown far faster than the entire economy – representing 23.2% of VTI. Consumer discretionary, health care, and industrials round out the top 4 sectors that have an outsized impact on this fund. Sector Diversification100%Basic…

Good breakdown. I think I’m going to hold off any wide funds though given the current ridiculous valuations. Going to be invested in more targeted (i.e. non tech) to ride out the inevitable rebalancing.