Overview
- With 2026’s rotation away from U.S. tech, total‑market ETFs such as VTI, ITOT, and SCHB are highlighted for capturing leaders and laggards across sectors at a 0.03% expense ratio.
- Vanguard’s VTI spans more than 3,500 U.S. stocks at a 0.03% fee and has averaged 9.2% annual returns since 2001, though its market‑cap weighting leaves performance heavily driven by the largest companies and excludes international stocks and bonds.
- A two‑fund approach using Vanguard’s VT for global equities and BNDW for global bonds offers a low‑cost way to own roughly 65% U.S., 25% developed ex‑U.S., and 10% emerging markets alongside broad fixed‑income exposure.
- SPDR S&P 500 ETF Trust (SPY) remains a core, highly liquid vehicle favored by institutions, delivering about 10.7% average annual returns since 1993 and holding $693.3 billion as of Mar. 2, needing roughly a 44% lift—just over $300 billion—to reach $1 trillion in assets.
- Investors seeking income are pointed to dividend‑growth ETFs like iShares’ DGRO, which tracks companies raising payouts, holds nearly 400 stocks, and yields about 2%.