Summary
- Vanguard Total Stock Market Index Fund ETF (VTI) is downgraded to Strong Sell due to excessive Large-Cap and Tech concentration, and high valuation.
- VTI’s top 5 holdings comprise 24.3% of assets, with a median market cap of $277B and a P/E of 27.4x, limiting true div…
Summary
- Vanguard Total Stock Market Index Fund ETF (VTI) is downgraded to Strong Sell due to excessive Large-Cap and Tech concentration, and high valuation.
- VTI’s top 5 holdings comprise 24.3% of assets, with a median market cap of $277B and a P/E of 27.4x, limiting true diversification.
- ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL) offers more balanced sector exposure and smaller-cap focus, but is initiated at Hold.
- Alternatives like SMDV (Buy) and RSP (Hold) present better valuation and diversification versus VTI, especially if market leadership rotates.
Oakozhan/iStock via Getty Images
In late November, I suggested that readers should consider selling Vanguard Total Stock Market Index Fund ETF (VTI) and replacing it with another Vanguard ETF, the Vanguard Small-Cap Value Index Fund ETF (
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