5-Star ETFs Poised to Pop: Vanguard Total Stock Market

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the Vanguard Total Stock Market ETF (NYS: VTI) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at the Vanguard Total Stock Market and see what CAPS investors are saying about the ETF right now.

Vanguard Total Stock Marketfacts

Inception

May 2001

Total Assets

$18.3 billion

Investment Approach

Employs a passive management strategy designed to track the performance of the MSCI US Broad Market Index, which represents 99.5% or more of the total market cap of all U.S. common stocks.

Expense Ratio

0.07%

Dividend Yield

2.1%

1-Year / 3-Year / 5-Year Annualized Returns

6.1% / 10.7% / 0.5%

Best YTD Performers Among Top 10 Holdings

Apple (NAS: AAPL)

IBM (NYS: IBM)

Chevron (NYS: CVX)

Alternatives

SPDR S&P 500 (NYS: SPY)

iShares Russell 3000 Index (NYS: IWV)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 93% of the 340 members who have rated Vanguard Total Stock Market believe the ETF will outperform the S&P 500 going forward. These bulls include DNE750 and dajaydee.

A few months ago, DNE750 tapped Vanguard Total Stock Market as a relatively cheap way to buy into the market: "This ETF, which closely replicates the [SPDR S&P 500] on a more broad perspective, will almost always [outperform it] due to significantly lower expenses."

In fact, Vanguard Total Stock Market sports a paltry expense ratio of 0.07%. That's even lower than that of other low-cost, broad U.S. ETF plays like SPDR S&P 500 (0.09%) and iShares Russell 3000 (0.2%).

CAPS member dajaydee elaborates on the bull case:

It is always important to have an index fund in your portfolio. I chose this one as it attempts to mirror the investment return of the overall US stock market. Some wiser than me have said, that if you can't beat em, join em. In other words, if you can't beat the market, be the market, and the best way to do that is through a low priced index fund. In this case the Vanguard Total Stock Market ETF fits the bill with a measly expense ratio.

What do you think about Vanguard Total Stock Market, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Vanguard Total Stock Market?Add it to your watchlist.

At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Fool owns shares of Apple and IBM.Motley Fool newsletter serviceshave recommended buying shares of Apple, Chevron, and IBM, as well as creating a bull call spread position in Apple. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners