$1,000 in VTI Could Turn Into $12,385
Key Takeaways
The Vanguard Total Stock Market ETF (VTI 0. 10%) is one of the largest and most exchange-traded funds (ETFs). With over $483 billion in assets under management (AUM), it's the fourth largest...
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July 1, 2025
05:17 AM
The Motley Fool
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The Vanguard Total Stock Market ETF (VTI 0. 10%) is one of the largest and most exchange-traded funds (ETFs)
With over $483 billion in assets under management (AUM), it's the fourth largest ETF
The big draw of VTI is that it vides investors with broad exposure to the entire U
Stock market through one single investment vehicle
That enables investors to capture the returns duced by the whole U
Equity market, which have been good over the long term
For example, the Vanguard Total Stock Market ETF has duced an average return of 8. 75% since its inception in the middle of 2001
At that rate, a $1,000 investment in VTI could turn into $12,385 in 30 years
Here's a closer look at this ETF and why it's a great fund to buy and hold long-term
Image source: Getty Images
Holding the whole stock market in one fund The Vanguard Total Stock Market ETF aims to track the performance of the CRSP U
That index seeks to represent the entire investable U
It includes companies that trade on the New York Stock Exchange, Nasdaq, and other smaller exchanges
The companies range in size from mega-large-cap stocks to tiny microcap stocks
The index comprises more than 3,500 stocks, all of which VTI holds
The fund vides investors with very broad and diversified exposure to the U
It holds stocks across all industries, led by nology, at 34. 5% of its holdings
That diversification helps reduce risk
However, while the fund has more than 3,500 holdings, it weighs its holdings by market cap, giving the largest companies in the country a more significant portion of its holdings
Its top holding is titan Microsoft at 6%
Overall, its top 10 holdings account for nearly 30% of the fund's assets
So while it vides broad exposure to the U
Stock market, its largest holdings do a lot of the heavy lifting in driving returns
Stock market has duced healthy returns over the years
That has driven the performance of the Vanguard Total Stock Market ETF, which has been a solid long-term investment: ETF 1-Year 3-Year 5-Year 10-Year Since Inception VTI 12. 8% Data source: Vanguard
The ETF's returns since its inception in mid-2001 are pretty good
They align well with the average stock market return (as measured by the S&P 500) over the past 30 to 50 years
Its returns in more recent years are even higher
At its annualized rate over the past decade, the fund has grown a $1,000 investment into $3,134 during that period
If it kept up its higher return pace, VTI would turn a $1,000 investment into $30,773 in 30 years, compared with $12,385 if it maintained its rate of return since its inception
That shows the power of compounding a higher return over long periods of time
However, while the fund has dered strong returns over the years, there's no guarantee it will continue ducing returns at its historical levels
A longed future economic downturn would bably affect the stock market's returns and those generated by this fund
A great ETF to buy and hold for the long term The Vanguard Total Stock Market ETF aims to match the returns of the entire U
Stock market, which has dered a high-single-digit return over the very long term
It does that for a notably low cost: VTI has a meager 0. 3% ETF expense ratio
These features make it an ideal ETF to buy and hold forever to steadily grow your wealth
It can anchor any portfolio as a core holding
Matt DiLallo has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Microsoft and Vanguard Total Stock Market ETF
The Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
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