Vanguard Total Stock Market Index Fund ETF Shares and Vanguard Total Bond Market Index Fund: A Comprehensive Overview

Wednesday, 22 May 2024, 11:05

Explore the benefits and features of Vanguard's VTI and BND ETFs tailored for passive investors. With ultra-low expense ratios and impressive long-term returns, these funds offer broad market exposure and stable income opportunities. Suitable for hands-off investors looking for simplicity, diversification, and solid performance, Vanguard ETFs provide an ideal balance for a well-rounded investment portfolio.
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Vanguard Total Stock Market Index Fund ETF Shares and Vanguard Total Bond Market Index Fund: A Comprehensive Overview

Top Vanguard ETFs for Passive Investors: Key Traits and Benefits

The lazy portfolio is a popular concept that emphasizes low fees, simplicity, and diversification. If managing your investment portfolio is not your top priority, Vanguard's suite of exchange-traded funds (ETFs) might be just what you need. Vanguard has built its reputation on a shareholder-first approach, which translates into a diverse offering of stock, bond, and fixed-income ETFs that come with exceptionally low expense ratios. This investor-friendly fee structure is a significant factor in the company's impressive performance record in the rapidly expanding ETF market.

Vanguard Total Stock Market Index Fund ETF Shares

  • Expense ratio: The VTI sports an expense ratio of just 0.03%, significantly lower than the category average of 0.79%.
  • Yield: It offers a yield of 1.35%, providing a steady and reliable income stream.
  • 10-year average return: The fund has delivered exceptional long-term returns on capital, with a 10-year average annual return of 11.7%.
  • Number of stock holdings: The VTI holds a diversified collection of securities consisting of 3,719 stocks, approximating the full index in terms of key characteristics such as value, growth, income, and market capitalization.
  1. Long-term outlook: With a history of robust performance and a broad market representation, VTI's long-term outlook remains positive.
  2. 90% allocation: For investors under 60, a 90% allocation to the VTI is appropriate due to its potential for growth, diversification benefits, and moderate yield.

Vanguard Total Bond Market Index Fund

  • Expense ratio: The fund's expense ratio stands at 0.03%, which is considerably lower than the average of 0.57% for similar funds.
  • Yield: With a 30-day SEC yield of 4.72%, the BND offers an attractive income opportunity.
  • 10-year average return: The fund has a 10-year average annual return of 1.19%, which isn't great, especially in a high-inflation environment.
  • Number of bond holdings: The BND invests in a whopping 11,107 bonds, ensuring broad market coverage.
  1. Long-term outlook: The fund's strategy of investing across several segments and maturities positions it well for the future.

Vanguard's VTI and BND ETFs stand out as ideal choices for the investor who values ease of management without compromising on returns. Should you invest $1,000 in Vanguard Index Funds - Vanguard Total Stock Market ETF right now?


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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