How Broad Market ETFs Like VTI Can Support Long-Term Portfolio Stability

Vanguard Total Stock Market Index ETF (NYSEMKT: VTI) is an interesting exchange-traded fund (ETF). It isn't meant for investors looking to find the next hot stock. It is designed for investors who recognize the difficulty of that goal. Here's why long-term investors might want to consider adding a broad-based ETF like this to their portfolio.Vanguard Total Stock Market Index ETF basically owns all of the stocks that trade in the U.S. market. It uses a market-cap-weighted approach, so the largest companies have the greatest impact on performance. That's basically how the economy works, so this weighting methodology makes sense. Right now, some of the biggest holdings are the names you would expect, including Nvidia, Apple, Microsoft, Amazon, and Alphabet.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool