The Vanguard Total Stock Market ETF (VTI) offers investors exposure to over 3,500 U.S. stocks in a single purchase, from mega-cap tech giants to small-cap companies. With an expense ratio of just 0.03%, it's one of the cheapest ways to invest in the entire U.S. market. A $10,000 investment would cost only $3 annually in fees.

Since its 2001 inception, the ETF has delivered an average annual return of 9.2%, turning a $10,000 initial investment into more than $90,000 today. This performance makes it an attractive option for long-term investors seeking broad market exposure without the complexity of managing individual stocks.

However, the ETF has notable limitations. Its market-cap weighting means 35% of performance depends on just 10 companies, creating concentration risk if tech giants falter. It also lacks international exposure and fixed-income assets, which many financial advisors recommend for balanced portfolios. While VTI excels as a core holding, investors may need additional funds for true diversification across asset classes and global markets.