Vanguard's VTI: A Core Holding for Multidecade Portfolios

The S&P 500 has returned an average of 11% per year since 1958. However, its composition has changed significantly over time, with winners becoming irrelevant in just a couple of decades.

This is why it's essential to own an ETF that can adapt to changing market conditions. Take the Vanguard Total Stock Market ETF (VTI), which owns both large-cap and smaller companies that have the potential to become future leaders.

In 1996, the S&P 500's largest holdings by market cap were Coca-Cola, ExxonMobil, Intel, Microsoft, General Electric, Merck, International Business Machines, Procter & Gamble, Johnson & Johnson, and Walmart. Thirty years later, only Microsoft remains in the Top 10.

The Vanguard Total Stock Market ETF offers broad exposure to the economy without needing to pick individual winners. It will increase its holdings of emerging tech names as their market caps grow over time.