VTI: The Lazy Investor’s Golden Ticket

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Now, listen closely, because this is important. The clever chaps at Vanguard have concocted a rather brilliant scheme – a way for ordinary folk, like you and me, to build a portfolio that doesn’t require a team of accountants or a crystal ball. It’s all about spreading your pennies far and wide, a bit like a very sensible squirrel hiding nuts for the winter. They call it an ETF, and it’s a positively scrumptious way to avoid the greedy clutches of Wall Street’s more… colourful characters.

The very best of these “set it and forget it” funds, in my humble opinion, are those broad enough to survive a market tantrum or two, yet cheap enough that the money-grabbing fees don’t nibble away at your profits. And the pick of the bunch? The Vanguard Total Stock Market ETF (VTI +2.11%), naturally. A wonderfully unpretentious name, wouldn’t you agree?

How VTI Fits the “Set It and Forget It” Objective

This ETF, you see, allows you to invest in practically the entire U.S. stock market. It tracks something called the CRSP US Total Market Index – a rather grand title, really – and includes around 3,500 individual stocks. Everything from the enormous giants to the teeny-tiny striplings. A truly democratic collection of companies, wouldn’t you say?

Lots of investors, at the moment, are flocking to the Vanguard S&P 500 ETF (VOO +1.95), thinking it’s the safest bet. It is broad, yes, but I reckon going even broader is the cleverer move. It’s a bit like choosing a small handful of sweets when you could have the entire jar!

The S&P 500 (^GSPC +1.97%) is terribly popular, mind you. Everyone recognizes the name. People tend to gravitate towards what they know, like moths to a rather gaudy lamp. And those large companies have been doing rather well for a while, influencing investors with their past successes. But past performance, as any sensible grown-up knows, is no guarantee of future riches.

I prefer a portfolio that’s a bit more… comprehensive. Around 25% of the Vanguard Total Stock Market ETF is made up of stocks that aren’t large caps. This provides diversification and exposure to areas of the market that can zig when the S&P 500 zags. It’s a bit like having a secret weapon in your financial arsenal.

2026 is Demonstrating Why Diversification Still Works

The Russell 2000 index, which measures the performance of small-cap stocks, has recently outperformed the S&P 500 for a remarkable 14 days in a row! That hasn’t happened in 30 years, you know. But the current market shift has benefited far more than just small companies. Value stocks, low-volatility stocks, and dividend stocks are all beating the S&P 500 so far this year.

The large-cap universe is rather heavily tilted towards tech stocks and the “Magnificent Seven” – a rather boastful name, if you ask me. The rest of the U.S. stock market has a very different flavour. The Russell 2000, for example, has its largest holdings in industrials, healthcare, and financials. Tech is only the fourth-largest sector.

As a result, the Vanguard Total Stock Market ETF is outperforming in the early stages of this year. A delightful surprise, wouldn’t you say?

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Given how companies outside the S&P 500 have led the market for so long, the return of small caps and total stock market funds could begin taking the lead again. It’s a bit like watching a sleeping giant slowly awaken.

And the best part? This ETF charges an expense ratio of just 0.03%, making it one of the most cost-effective options available. If there was ever a “set it and forget it” fund for your portfolio, the Vanguard Total Stock Market ETF might just be it. And if you invest enough for long enough, it could make you a multimillionaire with virtually no effort. A rather splendid thought, don’t you think?

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2026-02-09 05:32