VTI - VTI: Why We Like Total Market Better Than S&P 500
2024-04-02 04:58:07 ET
Summary
- The stock market, specifically the S&P 500 index, is currently very expensive.
- Vanguard Total Stock Market ETF offers advantages over the S&P 500 index due to its inclusion of mid and small-cap companies.
- VTI provides exposure to higher growth potential at a potentially lower valuation compared to the S&P 500 index.
Thesis
Our overview of the current stock market (that is, the S&P 500 index) can be summarized in two words: very expensive. We will explain why we formed this view in more detail a bit later. Against this background, the goal of this article is to explain A) what are the differences between the Vanguard Total Stock Market ETF ( VTI ) and the S&P 500 index, and B) why VTI can offer some advantages because of these differences....
VTI: Why We Like Total Market Better Than S&P 500