Here’s our last large stock ETF sample chapter from my latest book Exchange-Traded Funds Investing For Beginners.  The book has been well received, so I’ll post a number of other excerpts for your review in future posts.

And if they interest you, you can review the book for free right here.

That said, here’s an excerpt from the chapter entitled Different Types Of ETF Investments.  It begins like this…

VTI Vanguard Total Stock Market Index Fund ETF
Investing in the VTI is investing in the total stock market.  So instead of investing in 30 large key industry stocks, like the DOW, or 500 large company stocks, like the S&P 500, you are investing in 3948 stocks. That’s pretty much all of the arge, medium and small companies stocks in the total market.

People invest in large stocks because they are more established and have less risk, but they also have less growth ahead of them.  And small stocks because they have big growth potential (but higher risk).  So why not just invest in all of them.  And that’s where VTI fits in.

It follows the CRSP U.S. Total Market Index.  And it pays a 1.59% dividend which is about average.  But it has a very low net expense ratio of 0.03%.

So it pretty much represents the entire US stock market, is very low cost, and pays a dividend.  And it’s been around since 2001, so it’s well established.

The thinking with VTI is why invest in representative segments of the stock market when you can just invest in all of it by buying one ETF.

Indexed to: CRSP U.S. Total Market Index

Expense Ratio: 0.03%

Total Assets: $1 trillion

Annual Dividend Yield: 1.59%

P/E ratio: 19.11

Fund Inception: 05/24/2001

Top Holdings:

• AAPL        Apple Inc
• MSFT       Microsoft Corp Technology
• AMZN      Amazon.com Inc
• TSLA        Tesla Inc
• NVDA      NVIDIA Corp
• GOOGL    Alphabet Inc Class A
• BRK.B       Berkshire Hathaway Inc Class B
• GOOG      Alphabet Inc Class C
• XOM        Exxon Mobil Corp
• UNH        UnitedHealth Group Inc Healthcare

So that’s the VTI Vanguard Total Stock Market Index Fund ETF.  It’s very well established, with an extremely low expense ratio of just 0.03%.

And buying shares of VTI get you invested in the total stock market, virtually all the different stocks, all in just one investment.  Now, it’s not owned by legendary billionaire investor Warren Buffett since he owns VOO and  SPY already.  But that’s some great diversification, all in one ETF, wouldn’t you say.

And to learn about more ETFs if you found this sample chapter excerpt interesting, you can check out the book for free right here.