Is VTI A Safe Investment?

Is VTI a risky investment?

Originally Answered: Why is the Vanguard Total Stock Market ETF (VTI) categorized as high risk? It is 4/5 because it is relatively risky when compared to safer investments such as bonds. Stocks are risky but they provide higher returns than bonds. This ETF is heavy with U.S. stocks.

Is VTI safe long term?

One ETF that's relatively safe and has still earned healthy long-term returns is the Vanguard Total Stock Market ETF (NYSEMKT:VTI). Another advantage of this fund is that it provides more diversification than many other ETFs.

Is VTI a good ETF?

VTI is a good choice for investors or traders looking for comprehensive, total-market equity exposure, including micro-caps. The fund offers neutral coverage, making no industry, size or style bets to speak of. The fund is passively managed and remains fully invested at all times.

Related Question Is VTI a safe investment?

Is VTI a dividend stock?

The Vanguard Total Stock Market (VTI) ETF granted a 1.71% dividend yield in 2020.

Which is better VTI or SPY?

SPY is more suited for a tactical or trading-type market participant, whilst VTI is more suited for the archetypal buy-and-hold long term investor. VTI looks better suited to flourish when risk appetite and market conditions are generally buoyant.

What is VTI made up of?

The fund employs an indexing investment approach designed to track the performance of the index, which represents approximately 100% of the investable U.S. stock market and includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq.

What is the annual return of VTI?

Yearly investment returns

Year ended Vanguard Total Stock Market ETF
Capital return by NAV Total return by Market Price
2020 18.88% 21.05%
2019 28.33% 30.80%
2018 -6.93% -5.20%

Why should I buy VTI?

VTI is a balanced fund, with a healthy mix of small-cap, midcap, and blue-chip stocks. VTI is a highly efficient fund with a low expense ratio. AUM are also impressive at more than $800 billion.

Is VTI a mutual fund?

The clearest distinction between VTI and VTSAX is that VTI is an ETF while VTSAX is a mutual fund. ETFs trade like stocks do with real-time pricing while the stock market is open.

What is the Sharpe ratio of VTI?

VTISharpe Ratio Chart

The current Vanguard Total Stock Market ETF Sharpe ratio is 1.81. A Sharpe ratio greater than 1.0 is considered acceptable.

Is VTI good for growth?

As per management data, VTI's underlying holdings have an earnings yield of 4.1%, and an earnings growth rate of 18.8%. VTI's returns are also quite strong on a relative basis, with the fund outperforming the S&P 500 since inception, and by quite a bit.

Is VTI global?

So we're talking about all sectors, styles, and cap sizes, but only within the U.S. There are no international stocks in VTI. So while the fund still holds nearly 4,000 stocks, it is much more concentrated than VT, as VT holds the U.S. plus all the other countries in the world.

How long has VTI been around?

The Vanguard Total Stock Market ETF (VTI) provides similar broad exposure to the U.S. stock market, with the addition of small- and mid-caps. It was established in 2001. The fund seeks to track the CRSP US Total Market Index. This ETF holds over 3,500 U.S. stocks across all cap sizes.

What is the standard deviation of VTI?

Risk & Volatility Measures Info

Trailing Fund Category
Beta 1.04 1.00
R 2 99.36 95.38
Sharpe Ratio 1.07 1.00
Standard Deviation 19.18 18.82

How is VTI taxed?

VTI is considered more tax-effective than VTSMX. VTSMX tax-cost ratio is 0.66%. VTI cost ratio is 0.49%. That means the post-tax return will be 0.17 percentage points higher on average for VTI vs.

A Deep Look At The Vanguard Total Stock Market ETF (VTI)

Company Symbol % Assets
Alphabet Inc A GOOGL 1.06%
Alphabet Inc C GOOG 1.01%

Does VTI pay capital gains?

The date when dividends or capital gains are paid to shareholders.

Realized/unrealized gains.

Realized capital gain/loss -$2.14
Fiscal year end 12/31/2021
Unrealized appreciation/depreciation $136.45
Unrealized appreciation/depreciation as a % of NAV 57.59%

What is beta VTI?

Beta (5Y Monthly) 1.04. Expense Ratio (net) 0.03%

What is Vanguard equivalent to QQQ?

The Vanguard Information Technology ETF (VGT) and the Invesco QQQ ETF (QQQ) are similar technology-focused ETFs. Both are very low cost, with . 1% expense ratio for VGT and . Both ETFs also hold a large amount of companies, with QQQ holding 100 and VGT holding over 300.

Is VOOG better than VOO?

VOOV and VOOG are more expensive than VOO. At the time of writing, the market already tilts Growth. VOOG has outperformed in recent years, though we would expect VOOV to win out over the long term. VOOV is objectively not the best fund to specifically target large cap value stocks.

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