Tuesday, August 16, 2005

VTI: Vanguard's Oldest ETF

VTI, Vanguard's Total Stock Exchange Fund seeks to track the
performance of a benchmark index that measures the investment return
of the overall stock market. The Fund employs a "passive management"
approach designed to track the performance of the Wilshire 5000 Total
Market Index.

The top 5 holdings of this very much diversified ETF are:
General Electric (2.58%), Exxon-Mobil (2.25%), Microsoft (1.95%),
Citigroup (1.67%) and Walmart (1.51%).

Earlier in March, Vanguard cut fees for its Vipers ETFs to reflect asset
growth and economies of scale. As a result, the expense ratio on VTI was
reduced by more than half to 0.07 percent.

We feel it's a deal! VTI provides a wide diversification and with such a
small expense each year it would be an appropriate choice for your
retirement account. On Monday the ETF closed at $121.81.


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