Best Index Funds #2: Vanguard Total Stock Market Index (VTI)
1-Year Performance: 22.4%
5-Year Performance: 22.37% (annualized)
Expense Ratio: 0.05%
You’ll note that Vanguard funds are going to become something of a theme here. They’re not the king of low costs for nothing.
If you want to broaden your horizons in terms of index fund exposure, then check out the Vanguard Total Stock Market Index (VTI). This ETF is pegged to the MSCI US Broad Market Index, and by “broad,” that means exposure to about 99.5% of the total market capitalization of all common stocks traded on the NYSE, NYSEMKT and Nasdaq exchanges. However, on the top end, VTI doesn’t differ much from the VOO, and in fact the top 10 holdings are identical.
VTI currently holds more than 3,600 stocks and charges just 0.05% for doing so. That makes this Vanguard fund a fantastic way to essentially buy the entire market.