VTI
Vanguard Total Stock Market Index Fund ETF Shares
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23 F advice on my long term portfolio: VTI/QQQM/Costco
Is it ok to never have bonds if you start investing early?
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
I hit $100,000 in Broad Market Index Funds (mostly VOO and VTI) this Jan
I have about 10k on hand. Thinking 50% VTI or VT,30% VXUS, and rest 20% in stocks. Unsure about my ETF choices though
Target Date Funds (TDF) in Taxable Account for Money Needed in 4-5 Years?
What to do with $300,000 just sitting in my checking account?
Thoughts on 31yo investment portfolio - big pay raise next year and questions
100% stocks is not universally good advice. Stock market indexes are not always the right benchmark for your performance.
Is FZIPX same as AVUV? Looking for Low ER small cap ETF
I'm creating a portfolio for my brother, any thoughts?
Lost eBay Lego bid war, now have 1.3k, what stock to invest for coping
Where to invest 10k leveraged from CC cash advance (5% fee)?
As a non-US resident is it worth getting Ireland-domiciled ETFs?
3rd year of maxing out my roth ira. How do my allocations look
Limited International Fund Options in Employer’s 401K Plan?
Choosing spouses growth stocks for taxable account
Three things that will happen in the next 1-2 months. Willing to ban bet any of these if you are.
Okay Portfolio Going Into 2024? [23 YOLD Looking for long term investments]
Thinking about a higher growth portfolio for the new year.
30 year old. What's got the greatest possible potential for returns? TQQQ?
What is the quality of stock markets in other countries compared to US?
Searching for advice on F1 NRA brokerage accounts (Vanguard Vs. Schwab)
Started 529 account for child, invested in "NH Portfolio 2042 (Fidelity Index)"
With IRAs about to reset for 2014 what are you all planning to buy?
Portfollio allocation after move from edward jones
Do you ever buy stocks outside of the indexes and Mag 7 near all time highs?
Investing brokerage accounts for my kids and nieces - best course of action?
Investing advice for moving around 100k into ETFs
I've got $500K burning a hole in my pocket: should I bet it all on tech stocks?
Mentions
Broad Stock market returns double in value on average every 7 years. After 30 years your investment in VTI would like be with 2.5mil.
80% of my portfolio is VTI/VXUS but that's cool.
Yes, but index funds don't rebalance everyday. They have a set quarterly or annual schedule. Overall, index funds like VOO and VTI typically only turnover <10% of their portfolio every year.
What drop? I sit in VTI, VXUS, SCHD… one day my vanguard holdings dropped by just under 2%, then they were up by 2% the next day. SCHD has been jumping. What am I missing?
Edward Jones is truly horrendous. Their fees are absurd. Their value is negative. Move all your money there to a legit broker. I personally like Fidelity > Vanguard > Scwab. Even Webull or Robinhood are WAY better. Then put all your money in VTI + VXUS (or ITOT/IXUS) and ignore it.
Hope you don't mind some more questions, I was wondering why people are asking about VTI and not VOO. It seems like there's a clear consensus of no trust in this company, Elon, etc. Is it a generally adviseable statement to hold on contributing to investments before the IPO? I currently just invest in VOO, and was looking to start in non-us like VWO or SCHF. I'm not looking for professional advice, just trying to understand the ballgame better.
This does not matter. I’ve seen 10 of these posts in the last week. Just stop it, please. I say this as someone who also thinks TwitterSpaceXis a financial joke, as you’ve stated. The indexes are float adjusted. Look that up. They won’t be buying based on the entire cap of the IPO. More importantly, is the literal idea behind an index, which insulated you from exactly this issue. Even IF VTI went all in on the total market cap of the IPO evenly weighted. And the even IF TwitterSpaceX went from 1.5T to 0 overnight… VTI would drop…3%? Oh the humanity… The actual pressing concern for VTI is the greater market forces allowing us to be “okay” with these joke IPO valuations and what that means for valuations across the whole market. There could be actual systemic risk if the market crashes, but one IPO isn’t going to kill an index.
Ok, what is your AUM fee with EJ and ML? What are the expense ratios of the funds you're in? And what other junk fees are you paying? Any commissions, quarterly fees, etc? Now compare your fees to Vanguard's advisor fees. It would cost you 0.30% for the advisor and they'll probably have you in a mix of VTI/VXUS/BND, which have an expense ratio of .03%/.05%/.03%. My bet is you're paying over 1% AUM and your expense ratios are at least .20%. You shouldn't be paying more than 0.35% combined.
VTI's index is float adjusted. Meaning a huge fraction of SpaceX's market cap will not be included in the index because it's held by insiders and/or has other restrictions.
You haven't used copilot in vs code it seems , many big companies prefer that just bcuz you can access latest state of the art models right then in there in your IDE. Copilot is bigger and better structured than you think although I agree with everything else you said. Which is why I go with like VOO or VTI all of them I think will capture a specific marker with Google being at the forefront. Chatgpt will probably get acquired by msft
If you had all VTI, all VOO, or all NVDA you’d be 100% in equities, too. The difference is in the level of diversification and risk. I’m simply suggesting you could amp up the risk/reward a bit with VOO vs VTI at your age. Or maybe phrased slightly differently, among equity plays VTI is relatively conservative (imo).
* 44 years old * Currently employed ($140,000/yr) * 401(k) that is mostly in a target date fund, with about 40% sitting in a value fund, international fund, and mid-cap fund. All new contributions go to the target date fund. * Roth IRA that is kind of a mess because I've held it forever, but can be modeled as something like 80% VTI + 20% VXUS. * Only debt is my mortgage, which is 3.75% * Fully funded emergency fund (two years) I'm trying to be better with my money. Due to a rocky upbringing, I have a lot of purely psychological roadblocks when it comes to investing. I'd like to start putting more money into my taxable brokerage account, and I'm looking for advice on what I could do in terms of an "intermediate" risk profile that sits somewhere between HYSA/SGOV combination that I've been defaulting to lately and the portfolio I have in my retirement accounts. I've considered a mix of defensive sector ETFs (XLU/XLV/XLP) and heavily "filtered" ETFs like SCHD and VIG. I've also considered bonds, but after 2022 I feel like I don't understand the underlying mechanisms well enough to buy into that. Treasuries might also be an option. If anyone has any suggestions I'd love to hear them.
Now we can have AI start debates about the only two ETFs that exist, VOO and VTI.
Why not just do VTI or QQQM. You made some bets and they were not the right ones unfortunately.
Because the market doesn’t believe Andy Jassy is a visionary like Bezos was. Iirc Bezos left around that time. And it’s hard to argue against it - Amazon broadly missed the AI boat. Non business users likely won’t know what genAI models Amazon has, or even what Amazon is doing with AI. The rest of the mag7 is used more directly by retail traders/users for tech than Amazon. No one care that half the world runs on Amazon, if the stock price doesn’t move. I still have my vested RSUs from when I worked there. I’d have been better off just selling and buying VTI.
This is close for me. $45k cash, which is 12% of 400k net worth. Monthly expenses around 6k and 33 yrs old though. $3k into VOO/VTI monthly, which is about 22% of gross monthly income. The rest into Bitcoin and vacations mainly.
DCA into VOO/VTI and chill. Trying to time the bottom usually backfires. Maybe 10% into BTC if you're into that
DCA into MSFT, AMZN, AAPL, VOO and VTI. Stay away from penny stocks but you can watch them for entertainment. I’m talking about BYND and stocks like that.
VTI and chill or VOO
if youre trying to speed run a divorce, try 0dte spy puts if youre trying to get rich quick, dont if you want something to save and earn interest, take whatever it is you can realistically save and divvy it up into VTI/SPY/VOO maybe some TNXT
I just bought more VTI so it's going to go down now
VT would be essentially the equivalent, VTI would not be as it is US only.
well If I had that kind of cash right now, I'd probably spread it out some into broad EFTs like VTI, a bit international, and then keep part in something steadier outside equities so I've been using Fundrise for real state since it doesn't swing as hard as stocks or crypto, and it helps me stay calm when everything's sliding...
I'd love to see that too, but VTI and VOO are probably already bottomed out. I don't know that I have ever seen an ETF below 3 BP. The only mutual funds I've seen below that are FZROX and FXAIX but those are loss leaders.
with all that recession. I'm keeping some exposure in broad EFTs like VTI, but also I wanted something steadier outside stocks. I've started using Fundrise since real state feels less volatile than tech, and it helps me stay balanced long term.
why not just go VTI/VXUS and mag7 exposure goes down by 2/3
But VTI & QQQ and delete app
Personally I’m not trying to be clever in panic markets. I split it into two buckets. One is boring and consistent. Broad ETFs like VTI or a global fund, added slowly over time. That’s the part I don’t touch or overthink. The second is conviction names I’m genuinely happy holding for years, not trades. For me that’s stuff like META or NFLX only if the valuation makes sense and the story hasn’t broken. I scale in rather than go all in because sentiment can stay ugly longer than expected. Anything more speculative like COIN, PLTR, ASTS I treat as optional upside only. Small size, no pressure. If it goes to zero it doesn’t change my life. Biggest thing for me is avoiding the urge to deploy everything at once just because prices are down. Cash is also a position when volatility is high. I write a short free newsletter about how I think through markets like this as a normal retail investor, link’s on my profile if that’s useful.
Im writting this slowly because i know you guys are slow readers and learners. broad market index tracking ETF, VTI fot US lads or VWCE for EU lads.
If you are going to do high beta at least do a barbell with 50% in bonds or VTI.
If you put the $8k in VTI, and average 10% returns, it’s only 24 years until you have $80k to pay back those loans.
100% -> 60-80% VOO / VTI an the rest VXUS
VTI is down like.. 1%. I think everyone was in quantum or something
Been watching the same ~$2k swing in mostly VTI QQQ profile since October. Seems the market is finally deciding to go on sale.
Why wasn't your nest egg in an index? VTI dipped 2%.
Ive been wanting to get back in VTI studying its pullback past 3 months. So I limit bought back in at 333.50 today, which has been the support for a while. Of course its already under there After Hours. So to be proactive, I set limit buys for 320, 310, and 305. Why do I know Taco will make the market suddenly blow right through those somehow? Yeah, I probably just bought back in on the "correction and it will go to at least 290 or something.
Appreciate sincere advice, but I can assure you every time I buy an etf dip, it dips more and then all my money is tied up bc of the huge PPS. I bought VTI today at 333.5, lowest and has been support level for 3 months, and its already broken under, albeit AHs. So I set limit buys for 320, 317, 305, in case it goes lower....and knowing my luck it'll blow threw them.
Strong GDP? With VTI (domestic) up 13% over 52 weeks while VTIAX (international) up 35%? Not since WW2 has international growth so handedly outpaced US domestic markets. We had the "lost decade", but we lagged by only single digit percentages. The US markets are only keeping up with the rate of devaluation of the dollar. The monkeys are running the zoo.
I’m a regard and don’t know anything. However, I feel like we’re going to see a few weekly dips like this with a few green days in between. There is a lot being priced in right now that will probably send us down 5% to 10% during the first half of the year. So anyway with that said, I like ETFs with all this craziness. VXUS VTI VTWO. DCA down with every few percentage points. Again I just work at Wendy’s and don’t know anything.
I don't really follow individual stocks outside of VTI bro
Stop trying to do whatever is it you’re trying to do and just VTI and chill for 35 years. You’re welcome.
Vanguard Institutional Total Stock Market Index is close enough to VOO that you shouldn't worry about the difference. It and VTI both "seek to track the performance of the CRSP US Total Market Index."
Gold or VTI if I have 50% of my portfolio out and I don't need this money until I retire? The other 50% is VTI and I'm in my 30s.
I’m starting to believe that guy who said VTI was going to bag hold for a bunch of scam IPOs. Pension funds don’t want anything to do with that or anything with future political liability. Potentially criminal activity has been done by some of these firms, and it’s clear the lawsuits will be epic.
>...ESG funds have a track record of poor performance... You got your facts wrong, buddy. Over the lifespan of the funds, ESGV has outperformed VTI, VSGX has outperformed VXUS, and VCEB has outperformed BND. Those are your examples, that you picked. So knock it off with this "poor performance" B.S.
VOO and IVV are both the S&P 500, so if you only want the S&P 500 (large-caps), then VOO is already diversified. If you also want mid-caps or small-caps, you can use VTI (which is total-US-market), or buy mid-caps and small-caps separately (e.g., SPMD and IJR, which are the S&P 400 Mid-Caps Index and S&P 600 Small-Caps Index). These should be much smaller allocations than your S&P 500 allocation. Also consider some international, either separately (VXUS), or you can just get total-world-market (VT).
I had to sell all my positions to free up money to close on a house. Sold 1600 shares of VTI at $342 and feeling good about it now. I thank you for your sacrifice.
VTI is down for the year, VOO even more. What 2% are you talking about?
I'm a loser. when I usually get over 100%+ I evaluate. A good bit of the AI ones I got into a few years ago, I sold over the past few months. Profit gets put into VTI 69%and VXUS 31% split long term.
If you don't even have the experience to evaluate an ETF, then on what basis will you evaluate individual stocks? Based on what experience or knowledge? On one hand, you should stick with a broad index fund like the S&P 500 (VOO) or total market (VTI). On the other hand, you won't really understand the reason until you eventually get burned by picking stocks. So just skip QQQ and jump straight into picking stocks and get it out of your system now so you can understand why all the experienced investors tell you the same thing.
$3k isn't too small. You can start with 70%-80% in an ETF (QQQ or broader like VOOO/VTI) and the rest in 1-2 stocks you understand and can hold long term. Stock picking can grow as your portfolio grows, just focus on building a solid base first.
I’m 19 and I’m starting to invest. What do you think of my portfolio?- VTI 40% VXUS 20% NLR 10% SOXQ 10% WMT 7% PM 7% RYCEY 6%
The two I mentioned was to rotate more into growth SCHD to VTI and EPD(mainly to dump a MLP I didn’t need the income from) into VT. My portfolio is all boring ETF’s, VTI/VT/VXUS/SCHD, 6% BND, 6% IAU and maybe 1 or 2% stocks. My trading days are over.
The best strategy for retail investors is to DCA into index funds and never sell unless you absolutely need to. I have tried to time the market several times and also tried to swing trade on individual stocks. Did get lucky a couple of times but the only consistent winning strategy that has worked for me in the long run is to keep buying VOO/QQQ/VTI very week or every other week and never sell.
I thought of buying with the dips this week. It's tough choosing between Microsoft, Nvidia, VTI, or VOO.
I've recently rent the route of VTI and VOO. Occasionally, I'll buy some large cap stocks like MSFT, NVDA, or TSLA. I have taken huge dips investing in small cap stocks that never came back because they trade on lower volume. So, I never buy small cap stocks anymore, because if they drop down it's harder to come back up than a large cap stock and a lot of them peter out.
In a taxable account it's better to use ETFs than mutual funds because they're more tax efficient and if you should ever decide to switch brokwrages you can just take ETFs with you. So yeah just VT or a combo of VTI/VXUS.
Website doesn't matter. You open a brokerage account on Robinhood or Fidelity etc. and invest your money into Index funds like VOO or VTI
VTI is where it was at a few weeks ago. Stop looking at meme stocks
I go with a mix of VOO, VTI, and VUG with a small fraction of BRK
Good thing I just go with VTI
Oh wow, I better sell all my VTI and buy this shitcoin.
Are you trying to buy a house or not? If yes keep it in cash (HYSA) or tbills like SGOV on a broker. If no invest in VOO, VT, VTI etc
I got out with modest gains a year ago after their CEO was like AI for everything!!!! Had held for five years or so. I didn't feel like he had a vision for AI, I was wrong... it has finally beaten VTI on the five-year, head-to-head. Meh, I don't lose any sleep over the move.
That’s not how total market funds like the VTI work. The lowest one will have a minuscule market cap and even then, it wouldn’t be replaced. You might be mistaken with Fixed Count Index, which is unrelated to market cap and has an upper bound for stocks.
Eh. I'd keep it just for the diversification. I've been rolling off from high VTI holdings into VXUS by just buying VXUS and keeping my VTI and it seems to be working pretty well for my spending account. Granted, I could probably re-balance my 401K so the split is higher towards international (right now it's 80/20 US vs international, and I'd really like it to be closer to 60/40 if not 50/50 for the next 3 years at least)
I just stupidly spent 5 min reading about ETFs and how Space X is going to tank VTI (somewhere between -2% and bankrupt). Who are you people.
I use AVNM as a proxy for VXUS. It seems to outperform, don’t ask me why. Also have IDMO, DFIV and VEA for ex-US exposure. If you want a large cap ETF more like VOO rather than VTI, but outside U.S., check out AVIV. That’s one of the funds that goes into the broader basket for AVNM.
Holding SPY/QQQ/VTI is the same as holding cash here.
Honestly hadn’t considered this. Absolutely gonna consider reshuffling some of my VTI in the next year
Thanks for this retarded DD. I dont think you realize how big VTI is ya retard
This. OP is just a retard. I can't believe first commenter even gave them such a serious answer. Like you know what are the largest constituents of VT? https://finance.yahoo.com/quote/VTI/holdings/ Top 10 accounts for about 34.5% of total fund. SpaceX IF it got to 1.5T would be at the bottom of the top 10 if not right outside of it. >"You are literally becoming the exit liquidity for the VCs and insiders who got in early. They cash out at the top, and you are left holding the bag for a mature asset that is priced for perfection." Also OP is also wrong in thinking IPO = "the top" as the majority of companies continue to grow post-IPO. Plus OP talks like VOO/VT/VTI doesn't already have exposure to SpaceX """"They cash out at the top, and you are left holding the bag"""" Alphabet GOOGL/GOOG BY ITSELF owns around 7-9% of SpaceX shares. Bank of America bought in on a 2018 funding round. So even in the improbable case of immediate listing and addition into the index. AND then the improbable case of immediate 100% exiting by existing shareholders. AND THEN the improbable case of immediate of SpaceX going to $0. Even in that specific case, would probably lose even less than 2% cause the 100% exit by existing shareholders would mean Alphabet, B of A, and other companies dumped their shares.
The Low Float is the trap. Say SpaceX IPos at 1.2 trillion. Because initial float is tiny (say 5%), the supply is artificially choked. The price increases due to scarcity and FOMO. VTI is forced to buy that manipulated peak on Day 5, front ran by savvy institutional trader. When lock-ups gradually expire and that '1.2 Trillion' of insider equity hits the market, the float expands. VTI is then forced to buy more to match the new weight, effectively continually providing the exit liquidity for the insider dump. We could end up with multiple TSLA-like mega caps in the index, held up by passive index funds. Because they will be force to buy regardless of valuation.
You're missing a key piece of info here. VTI doesn't have to wait until Friday, they can just buy on day 0 and ride it up.
Actually, because traders know that there is a huge guaranteed buyer on Day 5, they can front run the trade and basically make VTI pay a higher price.
VTI is float adjusted and not all of Spacex will float
Did not know this! Super interesting and figured VTI was just like VOO. Shit
Bold of u to assume people here even buy VTI You know people gunna yolo spaceX options itself
DFUS is the VTI alternate and DFAW is the VT. Again lol I stated in the long form, the difference is negligible and not worth rebalancing a brokerage account or losing sleep over. If space x and open ai do collapse, markets fucked for a bit
Wow... So much wrong with this but OP clearly thinks he's onto something. Even a $1 trillion company would only represent about 2% of the total market index. If that stock dropped by 50%, the index would only pull back by 1%. That is a bad day, but hardly a "tanking" of the entire passive investing strategy. Also, a company doesn't just IPO on Monday and get added to VTI on Tuesday. This waiting period allows some volatility to leave the system. There's no day one exit liquidity.
Fee for shorting VTI will not be significant.
Essentially, the are “actively” managed but not in the bad way of *certain* types of ETFs. They do a variety of small differences in order to not exactly follow the index like tradition index funds. The big example is waiting longer to buy IPOs as most IPOs are naturally overvalued and fall shortly after. Another improvement is excluding a lot of small- cap “black holes” that have historically had major losses, yet are still included in total market indexes and thus index funds. They aren’t major and have technically, slightly, underperformed the traditional index funds, but the logic behind them is strong and why a lot of people follow them. Ben Felix has a couple videos on his YouTube channel explaining the benefits over VT and VTI, but tbh a broad market indexes fund is like 99% of the way to be the best. The strats that Dimensional uses are great, but the market isn’t immune. For example, if space x and OpenAI collapse like OP predicts, the market is fucked regardless of which fund you invest in as Amazon, Microsoft, Google, etc are public companies and have already invested massively in these companies.
this is why i stick to sector ETFs and individual picks instead of going full VTI, those mega IPOs are gonna be massively overvalued by the time retail gets access the forced buying mecanic you mentioned is brutal - index funds literally have to buy at whatever price the market sets on day one, no questions asked. meanwhile all the smart money that got in at reasonable valuations years ago gets to dump their shares on passive investors who think they're being "safe"
First of all, they do not "have to buy on Day 1". It takes times for indexes to adjust. Moreover, indexes like S&P 500 have profitability requirements for any stocks they hold. They must be profitable in the previous quarter and profitable over the sum of the last 4 quarters. Because of this, they can't even enter the index for at least year after IPO. Even VTI's index CRSP US Total Market Index only reconstitutes quarterly, and has rules for who can be included. Beyond that, you could argue that it's all priced in anyways.
VTI virgins vs Chad VEU
LLY is almost $1T market cap and makes up barely over 1% of VTI. VTI will be fine. With that said, OpenAI and SpaceX will both be highly overvalued.
No dude.. CRSP US Total Market also have eligibility rules. Must trade for at least 4 trading days before they are eligible for "Fast-Track" inclusion. Also even if SpaceX IPOed at a massive $500 billion valuation, it would only represent about 1% of a total market fund like VTI. You’re right about being exit liquidity though. The VCs made their money and are selling it to the public and you missed the 100x growth in the private sector.
Tbh, VTI distribution isn’t THAT much different than SPY. Here are the Top 10 holdings + approximate % weights for VTI and SPY, formatted so you can easily copy/paste into Reddit VTI – Vanguard Total Stock Market ETF (top 10 holdings) (~34.5% of fund)  1. NVIDIA Corp (NVDA) — ~6.56% 2. Apple Inc (AAPL) — ~6.12% 3. Microsoft Corp (MSFT) — ~5.47% 4. Amazon.com Inc (AMZN) — ~3.38% 5. Alphabet Inc Class A (GOOGL) — ~2.77% 6. Broadcom Inc (AVGO) — ~2.49% 7. Alphabet Inc Class C (GOOG) — ~2.20% 8. Meta Platforms Inc (META) — ~2.19% 9. Tesla Inc (TSLA) — ~1.94% 10. Berkshire Hathaway Inc Class B (BRK-B) — ~1.49% (Total of above ~37.4% — minor rounding differences across data sources)  ⸻ SPY – SPDR S&P 500 ETF Trust (top 10 holdings) (~39–40% of fund)  1. NVIDIA Corp (NVDA) — ~7.73% 2. Apple Inc (AAPL) — ~6.86% 3. Microsoft Corp (MSFT) — ~6.13% 4. Amazon.com Inc (AMZN) — ~3.83% 5. Alphabet Inc Class A (GOOGL) — ~3.11% 6. Broadcom Inc (AVGO) — ~2.79% 7. Alphabet Inc Class C (GOOG) — ~2.49% 8. Meta Platforms Inc (META) — ~2.45% 9. Tesla Inc (TSLA) — ~2.16% 10. Berkshire Hathaway Inc Class B (BRK-B) — ~1.49%
I like the theory but not sure if the VTI's move the needle enough
Fair argument. IPOs typically goes up in the first few days due to excitment and FOMO, so by day 5, when VTI starts buying, the prices are likely to be even higher.
VTI has a market cap of 278.16B, so unless they do something dumb with their allocations they are too tiny to take any meaningful size of OpenAI or SpaceX at 1T+ valuation.
...VTI is medium to high risk in the investing world, outside r/wallstreetbets degenerates, what are you talking about. 😭 Not only is it all-equity, which makes it aggressive, it's also US-only, lacking diversity regarding international markets. Standard investing advice is diversify more and have a much wider array of assets, especially bonds, and when even a true total market fund drops, let your investment vehicle automatically rebalance to take advantage of the dip. In other words you can argue based on your premise, that passive investing is gonna look beautiful woke active investing is gonna look ugly. 😛
If SpaceX IPOd at 1.5 trillion, was immediately added to VTI, and then immediately went to 0, the index would drop ~2%. Really not that big of a deal. Welcome to the whole point of broad based index funds. They’re built to tank any single company blowing up.
You're thinking of the S&P 500. Total Market funds (VTI) are different. VTI tracks the CRSP US Total Market Index. CRSP has a 'Fast Entry' rule specifically for massive IPOs. If a company is big enough to qualify for the Large Cap basket (which a $1T OpenAI obviously would), CRSP adds it to the index within 5 trading days
You're thinking of the S&P 500. Total Market funds (VTI) are different. VTI tracks the CRSP US Total Market Index. CRSP has a 'Fast Entry' rule specifically for massive IPOs. If a company is big enough to qualify for the Large Cap basket (which a $1T OpenAI obviously would), CRSP adds it to the index within 5 trading days