investorJB

  • Sector Deep Dive (3) – Industrials: The Machinery Behind Progress

    🤔 When Tech Feels Too Pricey and Finance Feels Too Complicated… What About Industrials?

    Ever felt stuck wondering where to invest next?

    Tech stocks look overheated. Financials feel tied to policies and interest rate noise. That’s when less-hyped sectors like Industrials start to look more interesting.

    Think about it: Planes, bridges, electric grids, factory robots — They don’t make headlines, but they keep the world running.

    And guess what? You already interact with this sector more than you think:

    • The airport you travel through,
    • The power system that lights your home,
    • The machines building your cities,
    • And the robots that now automate entire factories.

    So here’s the question: Is the industrial sector still worth investing in today? Let’s break it down.

    📘 1. What Is the Industrials Sector?

    Industrials include companies that build, move, power, or maintain the physical backbone of modern economies.

    Key sub-industries:

    • Construction & Engineering: Bridges, tunnels, airports
    • Machinery & Equipment: Heavy tools, factory machines
    • Aerospace & Defense: Military equipment, satellites
    • Logistics & Transportation: Railroads, trucking, shipping
    • Energy Infrastructure: Power grids, control systems
    • Factory Automation: Robotics, sensors, smart manufacturing
    • Industrial Services & Waste Management: Cleaning, repair, recycling
    • Staffing & Outsourcing: Workforce supply for industrial roles
    • Capital Goods: Pumps, valves, specialty tools

    📌 In short: Industrials turn ideas and capital into real-world impact.

    ✅ 2. Why Investors Like Industrials

    • Cyclical Growth: Strong upside during economic expansions
    • Policy-Linked: Direct beneficiaries of infrastructure bills, military budgets
    • Inflation Hedge: Asset-heavy firms can pass on rising costs
    • Stable Dividends: Many pay regular income and buy back shares
    • Automation Upside: Robotics and AI integration boost margins
    • ESG-Friendly Options: Waste and efficiency-focused firms fit green mandates

    ⚠️ 3. Risks to Keep in Mind

    • High Fixed Costs: Hard to scale down in downturns
    • Lower Growth Appeal: Lacks hype of tech or biotech
    • Regulatory & Contract Risks: Government dependence brings volatility
    • Supply Chain Vulnerability: Material shortages and delays
    • Currency Risk: For firms with global exposure

    📊 4. Top Industrial Companies to Watch

    CompanyFocus
    CaterpillarGlobal leader in construction equipment
    HoneywellTech-integrated industrial conglomerate
    Lockheed MartinDefense contractor and military supplier
    Raytheon TechnologiesAerospace and defense systems
    General Electric (GE)Broad mix: aviation, energy, healthcare
    Deere & Co.Smart agricultural and heavy machinery
    Union PacificLeading U.S. railroad operator
    Waste ManagementESG-aligned waste and recycling services
    ABBGlobal automation and power leader
    Emerson ElectricProcess automation and control tech

    📈 5. When Has the Sector Outperformed?

    PeriodWhy It Surged
    2003–2007China growth + commodity boom
    2010–2012Post-financial crisis recovery
    2016–2018Reshoring + infrastructure talk in U.S.
    2020–2022COVID recovery + supply chain rebuild
    2023-2025Defense budgets + reshoring momentum

    💵 6. Dividends and Income Strategy

    Industrials often reward patient investors with solid dividends. They may not offer explosive growth, but many generate steady cash flow and return capital to shareholders.

    CompanyYield (Est., May 2025)Notes
    Lockheed Martin~2.74%Defense plus long-term contracts
    Honeywell~1.95%Diversified revenue base
    Caterpillar~1.62%Dividend growth reputation
    Emerson~1.77%Control systems + industrial tech
    Waste Management~1.37%ESG favorite with reliable payouts

    ETF yields:

    • XLI: ~1.7%
    • VIS: ~1.9%
    • ITA: ~1.4%

    📉 7. ETF Performance: How Industrials Have Done

    Using XLI as a benchmark:

    Time PeriodAvg. Annual ReturnNotes
    Past 10 Years~9.5%Similar to S&P 500 overall
    Past 5 Years~7.8%Post-COVID recovery included
    Long Term~8.0%Performance varies by cycle

    📊 Source: [Morningstar – XLI Performance]

    🔍 8. 7 Big Trends Shaping the Sector

    1. Reshoring of U.S. manufacturing
    2. Massive infrastructure renewal (roads, power grids, water)
    3. Rising defense and aerospace budgets
    4. Factory automation and robotics
    5. Clean energy infrastructure investments
    6. Logistics and warehouse tech upgrades
    7. Industrial data and AI-driven control systems

    🧠 My Take — The Sector That Turns Vision into Reality

    Personally, I don’t overweight industrials. But I do consider them a core component of any broad-market ETF like SPY or VTI.

    Here’s why: Industrials are not about hype. They’re about execution. They make real things, solve real problems, and benefit from long-term policy and infrastructure cycles.

    And if you’re someone who:

    • Values stable dividends and strong cash flow
    • Believes in government-led spending (infrastructure, defense)
    • Has a long-term view on robotics or automation
    • Seeks ESG-aligned industrial exposure (waste, clean tech)
    • Feels tech stocks are too expensive or risky right now
    • Appreciates investing in the real-world economy

    …then industrials may deserve more space in your portfolio.

    Tech may inspire the future,
    but industrials build it.

    That’s why I still keep a portion in this essential sector.

    🔗 Related Posts

    • Sector Deep Dive (1) – Information Technology: The Force Behind Every Click
      👉 Read Post
    • Sector Deep Dive (2) – Financials: The Capital Engine of the Economy
      👉 Read Post

    💼 Disclaimer

    This blog post reflects my personal opinions and investing experience.
    It is not intended as financial advice. Please always conduct your own research or consult with a licensed advisor before making investment decisions.

    📌 Sharing Policy

    You’re welcome to share this post or quote parts of it — please credit the original source and include a link back to this blog.
    Unauthorized copying, pasting, or full reposting without permission is strictly prohibited.

  • Sector Deep Dive (2) – Financials: The Capital Engine of the Economy

    🤔 Why Are So Many Investors Still Betting on Financial Stocks?
    From banks to fintech, explore how finance powers every part of the economy.

    Think about your daily life.
    You check your bank account, swipe a credit card, transfer money via an app, maybe even trade some stocks or crypto.

    All of these — they’re powered by the financial industry.

    But finance isn’t just about banks anymore.
    From fintech and digital payments to insurance, asset management, and real estate lending — the financial sector is the bloodstream of the global economy.

    So here’s the question:
    Is the financial sector still a smart place to invest — or is it a relic of the past?

    In this post, we’ll unpack what the financial sector actually includes, what drives its performance, and whether it deserves a place in your portfolio today.

    📘 1. What Is the Financial Sector?

    The financial sector includes companies that manage or intermediate money in some form.
    Here are the main categories:

    1. Banks – Lending, deposits, credit cards, corporate finance (e.g., JPMorgan, Bank of America)
    2. Insurance – Life, property & casualty, reinsurance (e.g., MetLife, AIG)
    3. Asset Management – ETFs, retirement plans, private wealth (e.g., BlackRock, T. Rowe Price)
    4. FinTech – Mobile payments, P2P lending, digital wallets (e.g., Visa, Mastercard, PayPal)
    5. Real Estate Finance – Mortgages, commercial lending (e.g., Wells Fargo, U.S. Bancorp)
    6. Market Infrastructure – Stock exchanges, clearing houses, rating agencies (e.g., CME Group, S&P Global)
    7. Consumer Finance – BNPL, credit platforms, microloans (e.g., SoFi, Synchrony)
    8. Diversified Financial Conglomerates – Firms with insurance roots and broad equity holdings (e.g., Berkshire Hathaway)

    📌 Finance isn’t a single industry — it’s a complex system linked to interest rates, consumer behavior, and capital flows.

    ✅ 2. Why Investors Favor the Financial Sector

    1. Interest Rate Tailwinds – Rising rates often expand profit margins for lenders
    2. Attractive Dividends – Many financials offer consistent and high dividend yields
    3. Low Valuations – Trades at lower P/E ratios than growth sectors
    4. Cash Flow Strength – Strong balance sheets and liquidity across the sector
    5. Structural Importance – Heavily tied to central banks and economic policy
    6. Index Weighting – Financials make up ~14.5% of the S&P 500
    7. Inflation Resilience – Performs relatively well when inflation leads to higher rates

    📊 3. Key Players in the Financial Sector

    • JPMorgan Chase – The largest U.S. bank by assets
    • Bank of America – Major player in retail and wealth management
    • Goldman Sachs – Investment banking and institutional services
    • Visa / Mastercard – Global payment infrastructure giants
    • Berkshire Hathaway – A diversified financial conglomerate with insurance roots and long-term equity holdings
    • BlackRock – World’s largest asset manager, ETF powerhouse
    • Charles Schwab – Broker-dealer with massive retirement account flow
    • CME Group – Leading futures and derivatives exchange
    • S&P Global – Financial data, ratings, and index services

    ⚠️ 4. Key Risks to Watch

    1. Cyclical Sensitivity – Lending risk rises in economic downturns
    2. Interest Rate Risk – Narrowing margins if rates fall too fast
    3. Regulatory Changes – Heavily influenced by global policy shifts
    4. Tech Disruption – Traditional firms face pressure from fintech
    5. Systemic Exposure – Highly interconnected — one failure can spread
    6. Legal & Political Risks – Antitrust, ESG mandates, tax changes
    7. Cybersecurity – High-value target for hackers and data theft

    📈 5. When Has the Sector Outperformed?

    • 2003–2006: Low rates + housing boom
    • 2012–2014: Post-crisis recovery + strong credit performance
    • 2016–2018: U.S. rate hikes + bank deregulation
    • H1 2021: Reflation trade + rising yield expectations
    • 2023: Stable high-rate environment boosted dividend appeal

    💵 6. Dividends and Income Strategy

    Many financial stocks pay above-average dividends and supplement payouts with share buybacks.

    CompanyDividend Yield (Est.)Notes
    JPMorgan~2.8%Strong buybacks, core bank holding
    BlackRock~2.6%Reliable dividend growth + global ETF exposure
    MetLife~3.2%Insurance name with capital strength
    Wells Fargo~3.5%Rebuilding reputation post-scandal

    📊 Dividend data as of May 2025.

    ETF-level yield estimates:

    • XLF: ~1.8%
    • VFH: ~2.0%
    • KBWB: ~3.5%

    📈 7. What’s the Historical Return of Financials?

    Here we use XLF (Financial Select Sector SPDR Fund) as the proxy for U.S. financials:

    PeriodAvg. Annual ReturnNotes
    Past 10 Years (2015–2025)~9.2%Slightly below S&P 500
    Past 5 Years (2020–2025)~7.4%Recovery post-COVID
    Since 2000s~5–6%Lower due to GFC effects

    📊 Source 👉 Morningstar – XLF Performance

    💼 8. Popular Financial ETFs

    ETFFocusYieldLink
    XLFS&P 500 financials~1.8%View on Yahoo Finance
    VFHBroad U.S. financials~2.0%View on Vanguard
    KBWBLarge-cap U.S. banks~3.5%View on Invesco

    🔍 9. 5 Key Trends Driving the Sector Forward

    1. Digital Banking – Branchless, mobile-first finance
    2. Fintech Disruption – Open banking, BNPL, blockchain integration
    3. Sustainable Finance – ESG-friendly products and green bonds
    4. Cybersecurity Spending – Rising cost of digital defenses
    5. AI Wealth Management – Robo-advisors and algorithmic planning

    🧠 My Take — I Personally Don’t Overweight Financials

    To be honest, I don’t overweight the financial sector in my own portfolio.

    Why?

    Because S&P 500 ETFs already include around 14.5% financial exposure.
    That means by holding something like SPY or VOO, I already have solid base coverage — without needing to add more.

    For investors focused on dividends or interest rate cycles,
    raising your allocation to financials — perhaps by 2% to 10% —
    can be a practical strategy for enhancing income and balancing exposure.

    But for my goals, I prefer to focus more on growth, innovation, and long-term secular trends.
    Ultimately, portfolio strategy should match your personal objectives — and no single sector is a must-have for everyone.

    🔗 Related Posts

    • Sector Deep Dive (1) – Information Technology: The Force Behind Every Click
      👉 Read Post
    • Sector Deep Dive (3) – Industrials: The Machinery Behind Progress
      👉 Read Post

    💼 Disclaimer

    This blog post reflects my personal opinions and investing experience.
    It is not intended as financial advice. Please always conduct your own research or consult with a licensed advisor before making investment decisions.

    📌 Sharing Policy

    You’re welcome to share this post or quote parts of it — please credit the original source and include a link back to this blog.
    Unauthorized copying, pasting, or full reposting without permission is strictly prohibited.

    🔐 [Privacy Policy – Read Post]

  • Gold Is Not for Profit — It’s the System That Keeps Me Steady

    📍 “Gold? I let that train pass.”

    Back in 2022, when the Russia-Ukraine war broke out and gold prices soared,
    I didn’t buy any. It just felt too expensive.

    Fast forward to May 2025 — gold is on my radar again.
    Same price range, same hesitation… but this time, I’m buying.

    What changed?

    I stopped seeing gold as a way to make money.
    Instead, I started seeing it as a system — something that protects everything else I’ve built.

    🔁 What Made Me Look at Gold Differently

    I’m normally the kind of investor who dives into leveraged ETFs, tech stocks, and Bitcoin.
    I’m drawn to volatility, growth, and asymmetric upside.

    But as my portfolio grew, so did a question in the back of my mind:

    “What if everything crashes — do I have anything that won’t?”

    That’s when gold came back into focus.

    Gold doesn’t spike dramatically.
    It doesn’t crash either.
    It just sits there — quietly, consistently.

    And right now, that’s exactly what my portfolio needs.

    🧠 How I Define Gold Now

    “Gold is the only thing in my portfolio that does nothing —
    and that’s exactly what makes sure nothing else falls apart.”

    At the moment, about 1.2% of my assets are in gold.
    My plan is to slowly increase that to 5%, dollar-cost averaging over time.

    It doesn’t matter if it doesn’t grow.
    The rest of my assets are designed to do that.
    Gold’s job is to keep me steady when everything else is shaky.

    📉 Let’s Be Honest: Gold Is Boring Right Now

    Gold is no longer moving with the market.
    In 2022, it rallied alongside stocks. But in 2025?

    • When the Nasdaq surges, gold is quiet.
    • When the dollar is strong, gold pulls back.
    • We expect rate cuts, but they haven’t come yet.

    Honestly, it’s dull. But to me, that’s exactly why it’s a good time to buy.

    I love building positions when everyone else has lost interest.
    There’s something satisfying about accumulating during sideways markets — not just crashes.

    🌍 Central Banks Are Buying Gold — Big Time

    According to the World Gold Council’s 2024 survey,
    81% of central banks plan to increase gold reserves.
    That’s the highest percentage ever recorded.

    Countries like China, India, Turkey, and Poland are leading the charge.

    Why?

    Because they’re de-risking from U.S. dollar exposure
    and increasing assets they can physically control.

    This shift tells me that gold is no longer a playground for short-term traders.
    It’s becoming a long-term store of value for institutions.

    That means gold might become less volatile — and more resilient.

    ⚠️ But One Risk Still Remains: ETF Liquidation

    One thing to watch for is this:

    When ETF investors sell, gold prices can fall — hard.

    In 2013, gold ETFs like GLD saw massive outflows,
    causing gold to crash by -28% in a single year.

    That’s because ETFs hold real gold.
    So when people sell, actual gold hits the market.

    🔁 But the Structure Has Changed

    In the past, short-term traders dominated ETF flows.
    Now, we’re seeing long-term capital stepping in — central banks, pensions, family offices.

    As of 2025, gold ETFs collectively hold 3,253 metric tons of gold.
    And that number is growing.

    Yes, outflows can still hurt short-term prices.
    But the investor base is changing — and that changes the game.

    “Before, ETF selling meant panic.
    Now, it’s less likely — because most holders aren’t looking to sell.”

    🔒 My Final Take: Gold Is My Portfolio’s Insurance Policy

    I don’t expect gold to rise.
    I expect it to hold.

    Gold is there to absorb shocks
    — so that my growth assets can survive long enough to recover.

    So I’m buying it slowly, quietly, with conviction.

    As my portfolio grows,
    the role of gold becomes even more essential.

    🧠 My Take

    I don’t need gold to shoot up or outperform the market.
    I need it to stay calm when everything else falls apart —
    so that my riskier assets have a chance to recover and grow again.

    That’s what gold means to me:
    Not profit. But time. Stability. The strength to hold on.

    💼 Disclaimer

    This blog post reflects my personal opinions and investing experience.
    It is not intended as financial advice. Please always conduct your own research or consult with a licensed advisor before making investment decisions.

    📌 Sharing Policy

    You’re welcome to share this post or quote parts of it — just credit the original source and include a link back to this blog.
    Unauthorized copying, pasting, or full reposting without permission is strictly prohibited.

  • Sector Deep Dive (1) – Information Technology: The Force Behind Every Click

    🤔 Why Are So Many Investors Obsessed with Tech Stocks?

    Think about your day. You wake up and check your phone. You work on your computer. You stream content after dinner.
    All of that — powered by technology.

    But tech isn’t just about gadgets anymore.
    Artificial intelligence, cloud computing, cybersecurity, and fintech are shaping how the world works — and how the future will unfold.

    So here’s the question:
    Is now still a good time to invest in tech stocks, or has the moment passed?

    In this post, we’ll break down what the Information Technology (IT) sector really is, why it matters, and whether it deserves a spot in your portfolio.

    📘 1. What Is the Information Technology Sector?

    The Information Technology sector includes companies that develop or provide technology products and services.
    You’ll find companies in areas such as:

    • Software & Services: cloud platforms, productivity software, AI tools (e.g., Microsoft, Adobe)
    • Hardware & Equipment: computers, semiconductors, networking devices (e.g., Apple, Nvidia, Cisco)
    • IT Services: infrastructure, consulting, cybersecurity (e.g., Accenture, Palo Alto Networks)

    Tech is no longer a standalone industry — it’s the backbone of nearly every other sector.
    Manufacturing, finance, healthcare, even energy — they all depend on technology to operate and grow.

    🔗 See the official IT sector breakdown on S&P Global

    ✅ 2. Why Investors Love the Tech Sector

    • Long-term growth potential: Many tech stocks have posted double-digit annual gains for a decade or more.
    • Innovation fuels returns: Breakthroughs in AI, quantum computing, blockchain, and more.
    • Strong fundamentals: High margins, low debt, and strong cash flow.
    • Heavy index weight: Tech represents over 28% of the S&P 500 index.
      🔗 Source: S&P Global Sector Indices

    📊 3. Top Tech Giants in This Sector

    Here are some of the most influential players in the sector:

    • Apple: Delivers a seamless ecosystem used by over a billion people worldwide.
    • Microsoft: Powers businesses with software, cloud, and enterprise AI.
    • Nvidia: Develops critical GPUs used in AI, gaming, and data centers.
    • Adobe: Dominates the creative software space for design and digital media.

    ⚠️ 4. Risks You Shouldn’t Ignore

    • High valuations: Tech stocks often trade at lofty P/E ratios.
    • Volatility: Sensitive to earnings, interest rates, and macro trends.
    • Regulatory threats: Big tech faces increasing scrutiny over competition and privacy.
    • Concentration risk: Most tech ETFs are dominated by just a few large companies.

    📈 5. When Has Tech Outperformed?

    • 2020–2021: COVID-driven digital acceleration + ultra-low interest rates
    • 2023: AI hype returned just as interest rate hikes slowed

    🔗Portfolio Visualizer

    💵 6. Dividends and Income Potential

    While not known for high yields, several top tech companies offer growing and consistent dividends:

    • Microsoft: Over a decade of dividend growth
    • Apple: Regular dividends + massive buybacks

    Most tech ETFs offer modest yields between 0.5% and 1.2%.

    💼 7. Popular Tech ETFs

    If you want diversified tech exposure, here are some of the top choices:

    ETFDescriptionDividend YieldLink
    XLKS&P 500 tech sector~1.0%XLK on Yahoo Finance
    VGTBroad U.S. tech incl. mid/small caps~0.7%Vanguard – VGT
    QQQNasdaq 100, tech-heavy~0.6%Invesco – QQQ
    FTECMSCI USA IMI Tech Index~1.2%ETF Database – FTEC

    📊 Dividend data as of May 2025. Yields may fluctuate with market conditions.

    🔍 8. 5 Key Themes Shaping Tech’s Future

    1. Generative AI: Tools that generate text, images, and video
    2. Cloud computing: Essential for digital transformation
    3. Cybersecurity: A must-have in today’s threat landscape
    4. Fintech innovation: Mobile payments, blockchain, digital wallets
    5. Edge computing & semiconductors: Speed, efficiency, and decentralization

    🔗 Explore Gartner’s 2025 Strategic Tech Trends

    🧠 Final Thoughts

    I personally believe that human innovation will only accelerate — and I’m investing accordingly.
    Tech isn’t just a high-growth sector. It’s a reflection of where society is headed.

    But make no mistake: tech is extremely sensitive to interest rates.
    When rates rise, future earnings become less valuable, and tech valuations take a hit.
    When rates stabilize or drop, tech tends to rebound faster than the broader market.

    That’s why successful tech investors don’t just follow earnings.
    They track central bank policy, liquidity trends, and investor sentiment across the macro landscape.

    If you believe in the future of technology, this sector might be one of the smartest long-term bets.

    What do you think?
    Would you back the future with your portfolio?

    🔗 Related Posts

    • Sector Deep Dive (2) – Financials: The Capital Engine of the Economy
      👉 Read Post
    • Sector Deep Dive (3) – Industrials: The Machinery Behind Progress
      👉 Read Post

    💼 Disclaimer

    This blog post reflects my personal opinions and investing experience.
    It is not intended as financial advice. Please always do your own research or consult with a licensed advisor before making investment decisions.

    📌 Sharing Policy

    You’re welcome to share this post or quote parts of it — as long as you credit the original source and include a link back to this blog.
    Unauthorized copying, pasting, or reposting in full without permission is strictly prohibited.

    👉 Privacy Policy – Read Post

  • Is VTI ETF the Best Way to Invest in the Entire U.S. Market?

    Why Are So Many Investors Drawn to VTI?

    “Which ETF should I buy these days?”
    “SPY feels too common, and QQQ seems too volatile…”
    “Wouldn’t it be safer to invest in the whole U.S. market?”

    I used to ask myself these exact questions.
    At first, I only knew big names like SPY and QQQ. But as I dug deeper, one ETF started to stand out: VTI.

    It felt like investing not just in a company, or even a sector, but in America itself.

    But is VTI really the best answer for long-term investors like us?
    Let me walk you through my analysis, backed by data, experience, and a long-term view.

    📌 VTI ETF Overview

    ItemDetail
    IssuerVanguard
    Inception DateMay 24, 2001
    Underlying IndexCRSP US Total Market Index
    Expense Ratio0.03%
    Dividend FrequencyQuarterly
    Dividend Yield~1.5% (as of 2025)
    PriceAround $260
    Avg. Volume3M–4M shares/day

    👉 Official VTI Page (Vanguard)

    The CRSP index includes large-, mid-, small-, and micro-cap stocks — essentially the entire U.S. equity market.

    ✅ Strengths

    • Exposure to over 4,000 U.S. companies
    • Extremely low cost (just 0.03% expense ratio)
    • Balanced exposure to both large-cap stability and small-cap growth
    • Broad diversification reduces individual stock risk
    • Consistent dividends
    • Represents the full power of the U.S. economy
    • Endorsed by investing legend Paul Merriman as one of the most efficient ETFs for everyday investors

    📊 Data Point: There are ~5,000 listed U.S. companies. VTI includes ~4,000 of them
    👉 Source: Vanguard Holdings

    📊 Data Point: U.S. GDP reached ~$28 trillion in 2024
    👉 Source: World Bank

    ⚠️ Weaknesses

    • Higher volatility during downturns due to small-cap exposure
    • Limited international diversification
    • Currency risk for non-U.S. investors (if the dollar weakens)

    📈 Historical Performance

    Historical performance of VTI

    -Historical performance of VTI – Over 393.23% growth since inception (Source: Google Finance)

    Time FrameAvg. Annual Return
    Last 10 Years~11.6%
    Last 5 Years~12.4%
    2023+20.5%
    2022–19.5%
    2020+20.99% (SPY was +18.4%)

    👉 Source: Morningstar VTI Performance

    💡 Case Study: 2020–2021 Small-Cap Rally

    In the aftermath of the 2020 pandemic crash, massive stimulus packages and near-zero interest rates triggered a surge in small-cap stocks.

    The Russell 2000 Index, heavily composed of small-cap companies, soared nearly +140% from the March 2020 low to November 2021.
    📊 Source: Yahoo Finance

    During this time, VTI rebounded even faster than SPY, thanks to its exposure to small- and mid-cap stocks.

    💸 Dividend Growth

    YearTotal Annual Dividend
    2013$1.45
    2023$3.27

    ➡️ Annualized Dividend Growth: ~8.3%
    A solid hedge against inflation and a source of passive income.

    👉 Source: Dividend Channel

    🧬 Sector Allocation & TOP 10 Holdings

    Top 10 Holdings of VTI as of April 2025 (Source: Toss Securities)
    SectorWeight (%)
    Technology29.2%
    Financials12.9%
    Healthcare12.7%
    Consumer Discretionary10.4%
    Industrials9.3%
    Communication Services8.2%
    Others (Energy, Utilities, etc.)17.3%

    ➡️ Total Holdings: ~4,000 stocks
    👉 Source: Morningstar Portfolio

    🔄 Rebalancing

    • Frequency: Quarterly (March, June, September, December)
    • How it works: VTI automatically updates its holdings based on changes in the U.S. stock market.
      When companies grow or shrink in size, the index adjusts their weight — but instead of doing it all at once, CRSP spreads the changes over 5 days to avoid sudden price swings.
    • Example: If a small company becomes mid-sized, its share in the index gradually increases over a few days.

    👉 See how CRSP handles rebalancing

    This kind of gradual adjustment helps you stay diversified — without needing to lift a finger.

    🧠 Wisdom from John C. Bogle

    VTI isn’t just any ETF — it reflects the timeless philosophy of John Bogle, founder of Vanguard and creator of the first index fund.

    “Don’t look for the needle in the haystack. Just buy the haystack.”
    — John C. Bogle

    “Own the entire market. Do nothing. Just stay the course.”
    — John C. Bogle

    VTI embodies this strategy perfectly — simple, low-cost, and built for the long term.

    💬 My Take

    Honestly, I see VTI as “America in a single ticker.”
    If the U.S. economy thrives, so will VTI.
    And if it crashes? Let’s be real — no ETF will be safe anyway.

    Personally, I prefer VTI over S&P 500 ETFs like SPY or VOO. Why?

    Because I believe that every giant company once started small.
    Apple, Tesla, Amazon — all of them were once small-cap stocks.

    VTI allows you to own those companies from the very beginning, ride their growth, and capture the whole journey.

    If you want to keep it simple, invest regularly, and let time do the heavy lifting —
    VTI is one of the strongest hands you can play.

    💼 Disclaimer

    This blog post reflects my personal opinions and investing experience.
    It is not intended as financial advice. Please always do your own research or consult with a licensed advisor before making investment decisions.

    📌 Sharing Policy

    You’re welcome to share this post or quote parts of it — as long as you credit the original source and include a link back to this blog.
    Unauthorized copying, pasting, or reposting in full without permission is strictly prohibited.