Because it includes 500 or so large and profitable American companies, the S&P 500 index gets what seems like all the attention from investors seeking a hassle-free approach to the stock market.
But there are other ways to allocate your capital
The Vanguard Total Stock Market ETF (NYSEMKT: VTI) provides more comprehensive exposure to the U.S. economy. And it comes with a very attractive expense ratio of 0.03%, something Vanguard clients have come to appreciate. Is this exchange-traded fund (ETF) the best buy for long-term investors?
Know what you own Compared to the S&P 500 index, the Vanguard Total Stock Market ETF is more diversified, with nearly 3,500 holdings. Not only are all sectors represented, but companies of all sizes, including tiny small-cap stocks, are a part of this ETF. If someone were looking for the easiest way to invest in corporate America, it would be difficult to come up with a better choice than this ETF.