Vanguard Total Stock Market ETF (VTI): Complete Beginner's Guide
Vanguard Total Stock Market ETF (VTI) is a u.s. total market ETF from Vanguard with an expense ratio of 0.03% and $430.0B in assets under management. Our Beginner Suitability Score: 9.5/10 (Great for Beginners). 5-year annualized return: 15.20%.
Last updated: April 2026
Vanguard • U.S. Total Market
Expense Ratio
0.03%
AUM
$430.0B
Dividend Yield
1.30%
Inception
2001
Beginner Score
9.5/10
What is Vanguard Total Stock Market ETF?
VTI gives you exposure to the entire U.S. stock market in one fund, covering large-cap, mid-cap, and small-cap companies. With over 3,600 holdings, it is one of the most diversified U.S. equity ETFs you can buy. Beginners often choose VTI over S&P 500 funds because it includes smaller companies that have historically provided additional growth potential.
VTI is managed by Vanguard and has been available since 2001. With $430.0B in assets under management, it's one of the largest and most liquid ETFs available. The fund charges an expense ratio of 0.03%, which means for every $10,000 you invest, you pay approximately $3 per year in management fees.
VTI at a Glance — Key Metrics
| Expense Ratio | 0.03% |
| Total Holdings | 3,644 |
| P/E Ratio | 24.5 |
| Beta | 1.00 |
| Dividend Yield | 1.30% |
| AUM | $430.0B |
| Inception Year | 2001 |
| Issuer | Vanguard |
Top 10 Holdings in VTI
VTI holds 3,644 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 6.40% |
| 2 | Microsoft Corp. | MSFT | 5.80% |
| 3 | NVIDIA Corp. | NVDA | 5.50% |
| 4 | Amazon.com Inc. | AMZN | 3.40% |
| 5 | Meta Platforms Inc. | META | 2.40% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.00% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.70% |
| 8 | Alphabet Inc. Class C | GOOG | 1.70% |
| 9 | Broadcom Inc. | AVGO | 1.60% |
| 10 | Tesla Inc. | TSLA | 1.50% |
VTI's top holding is Apple Inc. (AAPL) at 6.40%, followed by Microsoft Corp. (MSFT) at 5.80% and NVIDIA Corp. (NVDA) at 5.50%. The top 10 holdings account for 32.00% of the fund's 3,644 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Apple Inc. | AAPL | 6.40% |
| 2 | Microsoft Corp. | MSFT | 5.80% |
| 3 | NVIDIA Corp. | NVDA | 5.50% |
| 4 | Amazon.com Inc. | AMZN | 3.40% |
| 5 | Meta Platforms Inc. | META | 2.40% |
| 6 | Alphabet Inc. Class A | GOOGL | 2.00% |
| 7 | Berkshire Hathaway Inc. | BRK.B | 1.70% |
| 8 | Alphabet Inc. Class C | GOOG | 1.70% |
| 9 | Broadcom Inc. | AVGO | 1.60% |
| 10 | Tesla Inc. | TSLA | 1.50% |
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VTI Performance History
Here's how VTI has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.90%
1 Year
25.80%
3 Year
10.20%
5 Year
15.20%
10 Year
12.80%
VTI has returned 15.20% annualized over 5 years and 12.80% over 10 years. YTD return is 2.90%.
View data table
| Period | Return |
|---|---|
| YTD | 2.90% |
| 1 Year | 25.80% |
| 3 Year | 10.20% |
| 5 Year | 15.20% |
| 10 Year | 12.80% |
Beginner Suitability Score: 9.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VTI scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 3,644 holdings, and has been available since 2001, giving it a proven track record.
How to Buy VTI — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VTI" — Use the search bar in your brokerage platform to find Vanguard Total Stock Market ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
VTI Sector Allocation
Here's how VTI distributes its investments across different sectors of the economy:
VTI's largest sector allocation is Information Technology at 30.5%, followed by Financials at 13.5% and Health Care at 11.8%.
View data table
| Sector | Weight |
|---|---|
| Information Technology | 30.5% |
| Financials | 13.5% |
| Health Care | 11.8% |
| Consumer Discretionary | 10.1% |
| Industrials | 9.2% |
| Communication Services | 8.2% |
| Consumer Staples | 5.3% |
| Energy | 3.9% |
| Real Estate | 2.9% |
| Utilities | 2.7% |
| Materials | 2.4% |
Dollar Cost Averaging Into VTI
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VTI's expense ratio of 0.03%, a $10,000 investment would lose approximately $258 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
VTI's expense ratio of 0.03% costs $259 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $46,351.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,673 | $20 |
| 10 | $21,589 | $21,529 | $60 |
| 15 | $31,722 | $31,590 | $132 |
| 20 | $46,610 | $46,351 | $259 |
Pros and Cons of VTI
Pros
- ✓Broadest U.S. stock market coverage with over 3,600 holdings across all market capitalizations
- ✓Ultra-low 0.03% expense ratio matches the cheapest ETFs available
- ✓Includes small-cap and mid-cap stocks that S&P 500 funds miss
- ✓True one-fund solution for complete U.S. equity exposure
Cons
- ✗Slightly lower returns than pure S&P 500 funds in periods when large-caps dominate
- ✗Small-cap holdings add minor additional volatility without always improving returns
- ✗Still heavily weighted toward mega-cap tech stocks despite broad coverage
VTI vs Similar ETFs
See how VTI stacks up against similar funds:
Frequently Asked Questions
Is VTI a good ETF for beginners?▾
VTI has a Beginner Suitability Score of 9.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VTI?▾
VTI has an expense ratio of 0.03%. This means for every $10,000 you invest, you pay approximately $3 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VTI?▾
You can invest in VTI with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VTI pay dividends?▾
Yes, VTI pays dividends with a current yield of approximately 1.30%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VTI?▾
The top holdings in VTI include Apple Inc. (6.40%), Microsoft Corp. (5.80%), NVIDIA Corp. (5.50%), and more. The fund holds 3,644 total positions, providing broad diversification across many companies.
What sectors does VTI invest in?▾
VTI's largest sector allocations are Information Technology (30.50%), Financials (13.50%), Health Care (11.80%). This sector distribution shows a focus on information technology stocks.
How much do VTI's fees cost over time?▾
With an expense ratio of 0.03%, a $10,000 investment in VTI would lose approximately $258 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.