The Vanguard Total Stock Market ETF (VTI) provides investors with an opportunity to gain exposure to the entirety of the U.S. stock market. Currently, VTI is facing some challenges, having experienced a decline of 2.72% over the past week, despite an overall rise of 14.71% since the beginning of the year.
On Thursday, VTI fell by 1.17%, mirroring declines in broader indices such as the Nasdaq Composite and the S&P 500, which decreased by 1.90% and 1.12%, respectively. This decrease can be attributed to renewed worries regarding the valuations of AI-focused stocks, which have been a significant driver of the market.
Despite these recent setbacks, VTI has seen robust investor interest. Its average trading volume over the last three months is 4.02 million shares, and recent data shows a positive net flow of $382 million over the last five trading days, indicating that investors have continued to pour capital into the ETF.
From a technical perspective, VTI is currently trading at $329.37, slightly above its 50-day exponential moving average of $326.80. This positioning suggests a bullish trend, and the ETF is rated as a Buy according to TipRanks Technical Analysis. The overall consensus on VTI remains as a Moderate Buy, with an average price target of $387.73, signaling a potential upside of 17.72%.
The ETF’s portfolio is heavily weighted towards technology, with Nvidia leading at 6.69%, followed by Microsoft at 5.98% and Apple at 5.87%. Additionally, VTI holds several companies deemed to offer significant upside potential, including BioAtla and Sangamo Biosciences.
While there are some holdings highlighted for their potential downside risks, the overall outlook for VTI appears to be cautiously optimistic, especially given its Smart Score of seven, suggesting alignment with broader market performance.
This combination of strong year-to-date performance and healthy inflows could indicate a resilient position for the VTI ETF, encouraging investors to consider its long-term prospects.