Why the Vanguard Total Stock Market Index Fund ETF Will Thrive Over the Next 20 Years

The Vanguard Total Stock Market Index Fund ETF (VTI) commands attention as a formidable entity in the realm of exchange-traded funds. With an extraordinary net asset value nearing $2 trillion, it stands as a monument of investor ambition.

In these times, when stock indices flirt with the heights of their historical peaks, anxiety lurks in the shadows. Many investors voice trepidations about the ETF’s potential for struggle in the years ahead. Yet, a critical piece of data suggests that such fears may be unfounded.

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This ETF stands resilient, anchored in data

The Vanguard Total Stock Market Index Fund ETF is not merely an option; it is a quintessential choice for the astute long-term investor. It meticulously tracks the CRSP US Total Market Index, a comprehensive catalogue encompassing an array of companies-from the humble small-cap to the prominent large-cap, from the stolid value stock to the audacious growth stock.

With a portfolio that houses over 3,000 individual securities, the ETF boasts remarkable diversification, albeit restriction to U.S. firms. Nevertheless, many of these enterprises wield global influence, subtly weaving a thread of international diversification into their fabric.

The expense ratio, a mere 0.03%, positions the Vanguard Total Stock Market Index Fund ETF as one of the most economically viable avenues for achieving broad market access. But in the wake of indices reaching unprecedented heights, a pressing question arises: is this ETF still a judicious selection? For those whose investment horizon stretches a full 20 years or more, the resounding answer is a definitive yes. Historically, no 20-year span has yielded a negative return from the U.S. stock market.

Admittedly, the returns over any two-decade stretch can fluctuate significantly. Yet, consider the example of a hypothetical investment in VTI made in 2007, just before the market’s peak; one would have witnessed a staggering 338% return over the ensuing 18 years. For long-term investors, this remains a promising signal: the Vanguard Total Stock Market Index Fund ETF continues to represent a sagacious choice for the relentless march of decades yet to come.

In conclusion, the future, their distant promise, is woven into the very fabric of this ETF. It stands firm, an emblem of resilience against the uncertainties of time. 📈

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2025-09-26 18:37