Summary Investing can be as simple or as complex as you want to make it. Many investors should start with one well diversified global ETF with a low expense ratio. This article reviews VTI, an ETF that can be added to the core portion of most investors’ portfolios to increase exposure to U.S. market equities. With the strong recent performance of the U.S. market, investors should consider using dollar cost averaging if adding large new investments in U.S. equities to a portfolio. Simply Investing – Philosophy Keep investing simple, consistent, diversified and low cost and you will significantly increase your chance of success. One well diversified global ETF with a low expense ratio is all that is required for many people starting to invest in equities, and an ETF that meets these criteria is the Vanguard Total World Stock ETF (NYSEARCA: VT ). As an investor’s experience, time dedicated to investing activities and desired risk, increases, many investors add ETFs to the core of their portfolio to gain exposure to new areas or increase exposure to areas that the investor believes will outperform. The next step for many investors is to allocate a percentage of their portfolio to “edge” positions, which offer additional risk and opportunity. Vanguard Total Stock Market ETF (NYSEARCA: VTI ) This article reviews VTI, an ETF that can be added effectively to the core portion of most investors’ portfolios to increase exposure to U.S. market equities. VTI – Investment Synopsis VTI’s objective is to track the performance of the CRSP U.S. Total Market Index. VTI invests in large-cap, mid-cap and small-cap equity diversified across growth and value styles. VTI employs a passively managed, index-sampling strategy. VTI five year performance compared to the S&P 500 (click to enlarge) Source: Yahoo Finance (12/14/2015) As the chart above shows, VTI and the S&P 500 have tracked each other very closely over the last five years and both are up approximately 60% over that period. VTI -Equity Characteristics Source: Vanguard (as of 10/31/2015) As the table above indicates, VTI is very diversified, holding 3,797 stocks. The median market cap is very large at $52.1 billion. VTI’s current price/earnings ratio at 21.9 is high compared to historical levels and compared to foreign equities. VTI – Top 10 Holdings Source: Vanguard (as of 10/31/2015) VTI’s top ten holdings are very large, well known, companies and at 15.2% of total net assets, make up a fairly large proportion of the total holdings. VTI – Equity Sector Diversification Source: Vanguard (as of 10/31/2015) VTI’s largest stock holdings are in the financial sector, followed by technology, consumer services and health care. Expenses and dividend yield VTI’s expense ratio is 0.05%, this is well below the average expense ratio of similar funds. Given the relatively high price of the U.S. markets, it is likely that future returns, may be lower than those recently experienced. In this environment, it is important that the core of your portfolio is allocated to funds with low expense ratios like VTI. VTI’s forward looking dividend yield is 1.98% based on the last four quarters distributions. Other U.S. Market ETFs Source: Seeking Alpha (12/14/2015) Above is a list of the top 10 U.S. market ETFs, listed by assets under management (AUM). As indicated, VTI is the third largest U.S. equity fund as measured by assets under management. For those that want to do further research, additional detail on these ETFs is available on Seeking Alpha’s ETF Hub. Conclusion Your chance of long term investment success increases significantly by keeping your investing simple, consistent and well diversified. Most investors would benefit by building a core position in a well diversified global ETF with a low expense ratio like the Vanguard Total World Stock ETF. After establishing this core position, well diversified, low cost, U.S. market ETFs like VTI can increase your exposure to U.S. markets for those investors looking to do so. With the strong recent performance of the U.S. market, investors should consider using dollar cost averaging if adding large new investments to a portfolio.