Why VTI is not always a good choice to capture the returns of the Total Stock Market

Buying VTI seems like a no-brainer, easy and simple. You are not taking any bets on MidCaps and SmallCaps, you buy it all.

Unfortunately, this is not really a good strategy, it's actually a poor strategy and you could be missing out on future performance by excluding the impact that MidCap and SmallCap stocks could have on your portfolio.

VTI is strongly influenced by the performance of LargeCap and this is by design. The portfolio structure Fund will seriously dilute the performance of MidCap and SmallCap stocks, hence impacting your portfolio long term.

If you added VOO or some other S&P 500 ETFs, you are doubling your exposure to the S&P 500 meaning your portfolio will follow the market performance of the S&P 500 and forget everything else.

Instead you should do this: breakdown VTI into 3 cap style: S&P 500 (ex: VOO), MidCap (ex: VO) and SmallCap (ex: VB) and give the exposure MidCap and SmallCap stocks deserve in your portfolio, and do not take any bets because market timing SmallCap or MidCap performance is impossible.

By giving an equal weight to all 3 ETFs, you will capture the outperformance of that cap style when it happens, without doing anything else. It's a no-brainer and a better performer than VTI.

Sample portfolio described here using Vanguard but you could use anyone else, like Invesco or Morningstar:

• 33% VOO
• 33% VO
• 33% VB

Hope that helps for VTI investors who want something better.