Leader #3: Vanguard Total Stock Market ETF
It wasn’t the best quarterly performance among all ETFs by any means, but the Vanguard Total Stock Market ETF (VTI) impressed by strongly outdoing its broad-based brethren, the SPDR S&P 500 ETF (SPY), by about 120 basis points.
Morningstar fund analyst Michael Rawson does a good job highlighting the many reasons VTI makes such a good investment, but for me, there are two key reasons investors should take note of this fund. First, Vanguard Total Stock Market is really darn cheap at an expense ratio of 0.05%, or just five bucks for every $10,000 invested. Second, VTI covers the spectrum of U.S.-listed stocks, from microcap all the way to mega-cap.
It also doesn’t hurt that it’s up 22% year-to-date.
In my opinion, Vanguard Total Stock Market ETF is a much better fund to own than the SPY. Year-to-date, its numbers justify that thought.