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Vanguard Total Stock Market ETF is a one-stop shop – an instantly diversified portfolio of thousands of U.S. stocks.
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The ETF has delivered annualized returns of over 9% over 20 years and has very low fees.
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Here’s how much you should invest and how long you should invest to build wealth.
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10 stocks we like better than Vanguard Total Stock Market ETF ›
Most of the time, anything you hear about easy money is some kind of trap or scam. But this is not always the case.
Consistently investing in quality exchange-traded funds (ETFs) can automatically build wealth and is a direct path to financial freedom with almost zero effort. Just set up automatic monthly purchases in your portfolio and wait for the companies in the ETF to grow, and your money will compound and your next egg will grow over time.
But which ETF is right? consider Vanguard Total Stock Market ETF (NYSE:VTI)a one-stop shop for creating a diversified portfolio using a single stock symbol. Vanguard is an industry giant and a brand you can trust when investing. The ETF also has a very low expense ratio, which means you’ll earn nearly all of the returns as your investment grows.
Here’s how to make yourself a future multi-millionaire in just a few steps.
You should always know what you’re investing in, even with an ETF like Vanguard Total Stock Market ETF. The ETF’s name removes much of the guesswork. The Vanguard Total Stock Market ETF holds more than 3,500 U.S. stocks of various sizes, covering all market sectors.
That means each share of the ETF contains a small slice of many of America’s best-known companies. You’ll own some of the “Big Seven” stocks; smaller, up-and-coming companies; blue-chip dividend stocks; and everything in between.
This ETF only includes U.S. stocks, but many of the largest and best-known U.S. companies do business around the world. It’s pretty much the closest one-stop shop you’ll find for your portfolio.
Despite its tremendous diversity, the Vanguard Total Stock Market ETF has generated an annualized return of 9.25% since its inception in 2001. Since U.S. stocks are expensive compared to their historical standards, I assume annualized ETF returns will fall to 8% going forward.
Here are some different sets of numbers, all of which assume you’re investing from zero. If you’re younger, you can invest less because you can wait longer for your money to grow. On the other hand, if you’re older, you can still pick up the slack. You just have to invest more to get similar results.
