Why I'm Still Investing in VTI Right Now No Matter What the Stock Market Does
2026-09-05 15:30
•Ben Gran •The Motley Fool
• • Axe Cap view
Why VTI Still Deserves a Spot in Your Portfolio
Despite volatility and lofty valuations, broad US stock exposure via VTI remains a solid long-term play.
South African investors often ask whether global tech heaviness and US market swings should make them shy away from ETFs like VTI, which tracks the entire US stock market. The short answer: no. The US market, especially through a fund like VTI with over 3,500 stocks, offers unmatched diversification versus individual counters here or the JSE’s sectoral concentration. Yes, there’s uncertainty—interest rate hikes or a stronger dollar (USD/ZAR) could pressure returns in the short term. But historically, the US market has bounced back strongly from crises, averaging close to 10% annual returns over nearly a century. That resilience benefits South Africans too, since currency swings often offset global equity weakness. For those who want local flavour, similar resilience is found in counters like AngloGold Ashanti, which often benefits from rand weakness and global gold demand, but that’s niche. VTI offers a simple, low-cost, and broadly diversified exposure to growth, and trimming it based on short-term noise can backfire. The risk is a significant US recession dampening earnings, which would hurt VTI returns. this is just our opinion and not financial advice
Maintain or add to VTI positions gradually, using rand strength as an opportunity to buy cheaper. Keep some exposure to rand-hedged assets like AngloGold Ashanti for balance.
- VTI
- USD/ZAR
- AngloGold Ashanti
- US economic recession hits corporate profits
- Sharp rand appreciation reduces rand earnings from US assets
6/10
The author advocates for continued investment in the Vanguard Morningstar Total Stock Market ETF (VTI) despite market volatility and concerns about overvaluation. Highlighting the S&P 500's 98-year track record of 10% average annual returns through multiple crises, the article argues that long-term investors should remain committed to low-cost index funds regardless of short-term market conditions. VTI offers broader diversification than the S&P 500 alone, holding 3,515 stocks with an ultra-low 0.03% expense ratio.
Our take is based on reporting first published by The Motley Fool.
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