"I've long been a proponent of diversification, and investing for the long-term in a structured and coherent fashion. Up until recently, most investors looking to create diversified portfolios had to do so on their own, or with the help of an advisor. And before zero trading fees became commonplace (largely due to payment for order flow and the rise of high-speed quantitative investing companies, but that's a story for another day), it was a costly endeavor to do so."
"One of the top ETFs I continue to pound the table on is the Vanguard Total Stock Market Index Fund (VTI), and for good reason. This ETF is aimed at investors looking for the broadest possible market exposure, with the fund tracking the entire U.S. market. That means that unlike other ETFs which are beholden to the 500 largest companies (see below), VTI provides the kind of exposure to small and mid cap companies many investors want."
Diversification and long-term, structured investing reduce risk and support coherent portfolios. The rise of exchange traded funds (ETFs) has expanded low-cost diversification access, reducing previous trading-cost barriers. ETFs cover a range from whole-market index funds to sector or single-stock trackers. Vanguard Total Stock Market ETF (VTI) tracks the entire U.S. market, offering exposure to small-, mid-, and large-cap companies while remaining market-cap weighted. VTI maintains an ultra-low expense ratio of 0.03% and low turnover, enabling minimal costs for broad-market exposure. Vanguard S&P 500 ETF (VOO) focuses on the 500 largest U.S. companies, representing large-cap market exposure.
Read at 24/7 Wall St.
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