The Quintessential U.S. Equity Fund
No other fund is as efficiently managed or offers such broad diversification to U.S. stocks as Vanguard Total Stock Market.
The Quintessential U.S. Equity Fund
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Mike Rawson: Vanguard Total Stock Market (VTI) is the quintessential U.S. equity fund. No other fund is as efficiently managed or offers such broad diversification to the U.S. stock market. By investing in every U.S.-listed security in proportion to its market capitalization, the fund gets close to the ideal market portfolio.
In recognition of the fund's success, the fund has grown to become the largest U.S. mutual fund available. With many actively managed funds, asset bloat can become a concern. But with this fund, it's less of a concern because the fund is able to pass on economies of scale, and it's able to track its index more efficiently.
In fact, the fund charges just 5 basis points; that's $5 on every $10,000 invested. The fund offers both a mutual fund and an ETF share class, which are both available at 5 basis points. While the fund excludes bonds, commodities, and international stocks, it's a great starting point in building an asset allocation.