5 Best Index Funds to Diversify Your Portfolio

3. Vanguard Total Stock Market ETF (NYSEARCA:VTI)

Yield (TTM): 1.49%

The Vanguard Total Stock Market ETF (NYSEARCA) tracks the performance of the CRSP US Total Market Index and uses an indexing investment approach. The fund invests in growth and value stocks of micro-cap, small-cap, mid-cap, and large-cap companies. The fund has a top 10 holdings concentration of 23.71% and has investments across a diverse range of sectors including technology, consumer cyclical, healthcare, and energy. The fund has an expense ratio of 0.03% and a trailing twelve-month yield of 1.49%.

One of the top 10 holdings of the Vanguard Total Stock Market ETF (NYSEARCA:VTI) is Alphabet, Inc. (NASDAQ:GOOGL). On August 3, Tigress Financial analyst Ivan Feinseth raised his price target on Alphabet, Inc. (NASDAQ:GOOG) to $186 from $183 and reiterated a ‘Strong Buy’ rating on the shares.

As of June 30, TCI Fund Management owns more than 2.47 million shares of Alphabet, Inc. (NASDAQ:GOOGL) and is the most prominent shareholder in the company. The investment covers 17.13% of TCI Fund Management’s 13F portfolio.

Arch Capital mentioned Alphabet, Inc. (NASDAQ:GOOGL) in its second quarter 2022 investor letter. Here is what the firm had to say:

“In May we decided to buy Alphabet Inc. (NASDAQ:GOOG) (parent company of Google, YouTube, and Android). Our thesis was simple. Alphabet has billions of locked-in users around the globe with businesses like Search, Maps, and YouTube that should grow in-line or faster than worldwide GDP. With all the cash these businesses generate, management is able to reinvest in Google Cloud, Other Bets projects like Waymo, and return cash to shareholders via share repurchases. At an enterprise value-to-free cash flow (EV/FCF) of around 20 at the time of our purchase, we believe this sets up shareholders for low risk 15%+ returns over the next five years.”