Following last weekâs introduction to exchange-traded fund (ETF) provider Vanguard and its low-expense-ratio funds, we turn our attention today to an offering with a 0.05% expense ratio, Vanguard Total Stock Market ETF (VTI).
VTI is the second-largest ETF among Vanguardâs offerings, and its highly cost-effective expense ratio is noted by Morningstar Inc. to be 95% less than the average expense ratio of funds of its type.
This ETF, as its name indicates, rises and falls in conjunction with the overall stock market. To achieve its results, VTI samples an index representing the investable U.S. stock market, including large-, mid-, small- and micro-cap stocks. This approach gives VTI a broadly diversified selection of securities that approximates the key characteristics of the full index.
Read more about this bargain market-spanning exchange-traded fund at Eagle Daily Investor.
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