The third largest ETP in the U.S. listed marketplace is not an S&P 500 tracker like the two largest funds SPY (SPDR S&P 500, Expense Ratio 0.09%, $212 billion in AUM) and IVV (iShares Core S&P 500, Expense Ratio 0.04%, $90 billion in AUM), but a fund from Vanguard designed to provide “Total Stock Market” indexing exposure.
This fund is VTI (Vanguard Total Stock Market, Expense Ratio 0.05%, $69.5 billion in AUM). VTI has just come off a decent 2016 in terms of pulling in new assets, raising approximately $6.5 billion in new funds in the trailing one-year period thanks to healthy creation activity. VTI tracks an index known as the CRSP U.S. Total Market Index, and the underlying portfolio is much broader than say the S&P 500 or Russell 1000 for example, holding 3,636 individual names presently.
In fact, within its specific category, VTI has the second largest number of holdings compared to fifty three other funds, expressing its rather broad diversification. From a “market cap” standpoint, VTI has 40% exposure to Mega-Caps, 31% to Large-Caps, as well as a 19% weighting to Mid-Caps and the remaining 7% and 3% allocated to Small-Caps and Micro-Caps accordingly.
Top holdings in VTI appear as follows: 1) AAPL (2.60%), 2) MSFT (1.99%), 3) XOM (1.55%), 4) AMZN (1.43%), 5) JNJ (1.42%), 6) FB (1.36%), 7) BRK.B (1.21%), 8) GE (1.17%), 9) JPM (1.12%), and 10) GOOGL (1.07%).
The Vanguard Total Stock Market ETF (NYSE:VTI) was trading at $116.25 per share on Monday afternoon, down $0.66 (-0.56%). Year-to-date, VTI has gained 0.81%, versus a 0.86% rise in the benchmark S&P 500 index during the same period.
Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.
He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.