Gains of the SPY With Higher Diversification?

[View in browser]( [The Spill Logo] Proprietary Data Insights Financial Pros’ Top Equity Index ETF Searches in the Last Month Rank Name Searches #1 State Street S&P 500 ETF 2590 #2 'Invesco QQQ NASDAQ 100 ETF 445 #3 'iShares Russell 2000 ETF 138 #4 State Street Dow Jones Industrial Average ETF 58 #5 'Vanguard Total Stock Market ETF 21 #ad [Exclusive Report of Q2’s Most Popular Stocks]( Brought to you by [Widemoat Research]( [The “Amazon Secret Royalty Program” Can Help Anyone Retire Like Royalty]( [Widemoat Research - The “Amazon Secret Royalty Program” Can Help Anyone Retire Like Royalty]( A unique type of investment could help you make more money than you will need for the rest of your life. It’s what we call the “Amazon secret royalty program.” It’s an income stream that allows you to collect $1,000s… $10,000s… or more every year! In fact, Business Insider says this type of investment could provide “enough money to live off of each year, without having any other retirement plan...” [Learn how to collect your first payout before June 13th.]( Another Interesting Alternative to the SPY Unless you’ve been living under a rock, you know about the market's most popular, most liquid ticker - SPY, State Street’s S&P 500 ETF. Up 66.5% over the last five-years, it’s not hard to see why folks love it. But we’re not here to talk about the SPY today. Instead, we’re going to talk about one of the least well-known index ETFs out there - VTI, Vanguard’s Total Market ETF. It holds a unique position amongst index ETFs as one of the most popular with investors looking for lower risk equity returns, at least according to our Trackstar Data. As we dug into the details, it turns out there is a LOT to love about this ETF. Key Facts About VTI - Net assets: $316 billion - 12-month trailing yield: 1.51% - Inception: May 24, 2001 - Expense ratio: 0.16% - Number of holdings: 3818 The S&P 500 Index holds the largest 500 equities by market capitalization. The Total Market Index just owns EVERY investable stock there is, from Apple all the way down to micro-caps. It does not hold REITs and preferred shares. Like the S&P 500, the Total Market Index is weighted by market cap, giving the largest companies more weight. That’s why the top 10 holdings don’t look all that different from the S&P 500. [Holding details] [Source: Vanguard]( Unsurprisingly, you get similar sector weightings to the major indexes. [Weighted exposures] [Source: Vanguard]( The big difference is when you add in those other 3,300+ companies to the S&P 500, you get higher diversification, a bit less volatility, and still maintain a good amount of the performance. Performance The big difference is when you add in those other 3,300+ companies to the S&P 500, you get higher diversification, a bit less volatility, and still maintain a good amount of performance. [Performance & fees] [Source: Vanguard]( As we noted earlier, the 5-year cumulative return on the S&P 500 is 66.5%. The cumulative return for the Total Market Index during that same period is 60%. Competition So, let’s see how the VTI stacks up against the other major index ETFs: - State Street S&P 500 ETF (SPY): The gold standard of index ETFs, the SPY captures the top 500 companies by market capitalization, weighted accordingly. - Invesco QQQ NASDAQ 100 ETF (QQQ): If you’re looking for a more tech-focused index, the NASDAQ 100 holds some of the largest tech and non-financial names listed on the NASDAQ exchange. - iShares Russell 2000 ETF (IWM): The Russell 2000 invests in the smallest 2000 companies by market capitalization. These stocks are often more volatile and sensitive to economic cycles. - State Street Dow Jones Industrial Average ETF (DIA): The often quoted but rarely used Dow Jones Industrial Average invests in 30 publicly traded companies on the NYSE and NASDAQ. Tickers are weighted by price and are selected by the editors at the Wall Street Journal. What you’ll find below is technology-leaning, and large-cap indexes still reign supreme. However, the VTI has a dirt-cheap expense ratio that’s only 1/3rd the cost of the SPY. [Net assets] [Simplifying the World of Investing for You]( Unpack the complex world of investing through the lens of some of the industry’s top investors. Subscribe to The Juice newsletter for FREE and lead the game like a pro! [Subscribe now.]( Our Opinion 10/10 We were quite impressed with the performance of this index as well as its cost structure. For those who want a bit less volatility without sacrificing too much in the way of returns, the VTI is an excellent choice as a core holding. 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