“Smaller companies carry the potential for higher returns but also come with higher risk. Since different markets and sectors perform independently in different economic environments, it’s important for investors to have portfolio exposure to a multitude of areas outside of just the S&P 500. Vanguard has a reputation of providing some of the lowest-cost investments available, and this fund’s 0.05% expense ratio is one of the lowest in the industry. Its 2% dividend yield will also appeal to investors seeking regular income from their portfolios,” said Investopedia of VTI.
SEE MORE: July ETF Flows Show Investors Turned Risk-On
Equity markets have been weighed down by various uncertainties, stock exchange traded funds may still strengthen as many still expect the S&P 500 to maintain its momentum, with the health care sector leading the charge.
Industry analysts in aggregate predict the S&P 500 will experience a 10% advance in price over the next year, Butters said in a note.
For more information on index funds, visit our indexing category.
Vanguard Total Stock Market ETF
