The 1 ETF I'd Buy if I Could Only Own One
2026-07-22 14:30
•David Dierking •The Motley Fool
•• ••• Axe Capital view
One ETF Worth Considering Beyond the JSE
VTI offers broad U.S. market exposure that South African investors might find hard to replicate locally.
For South African investors who want a single, low-cost fund that covers more than just the big names, Vanguard’s Total Stock Market ETF (VTI) stands out. Unlike ETFs tracking only the S&P 500, VTI includes mid- and small-cap stocks, offering exposure to parts of the U.S. economy poised for faster earnings growth in the mid-2020s. While the rand’s usual volatility against the dollar means timing matters—USD/ZAR swings can hit returns hard—over the long term, the diversification from owning thousands of U.S. companies can smooth the ride. Locally, no JSE-listed company offers this kind of breadth. If the rand strengthens sharply or U.S. markets face unexpected turmoil, those returns may disappoint. But as a single ETF option, VTI deserves a spot on the watchlist for prudent global exposure. this is just my opinion and not financial advice
I’d consider a measured allocation to VTI via a rand-hedged investment product or offshore account, balancing it alongside top JSE names like Naspers or Standard Bank for local weight. Trim exposure if the rand rallies above 15 against the dollar to lock in profits.
- VTI
- USD/ZAR
- Naspers
- rand appreciating sharply against the dollar
- U.S. small-cap sector underperforming expectations
6/10
The author recommends the Vanguard Total Stock Market ETF (VTI) as the single best ETF to own, citing its diversification across 3,500 U.S. stocks, ultra-low 0.03% expense ratio, and inclusion of mid-cap and small-cap stocks. VTI is preferred over the S&P 500 ETF (VOO) due to better diversification beyond large-caps. With small-cap earnings expected to grow 18% in both 2026 and 2027, VTI is positioned to outperform in the near and long term.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: David Dierking
Categories: Equities, Earnings
Tickers: VTI, VOO, VTWO
Sentiment: Positive - Recommended as the top single ETF choice due to broad diversification across 3,500 stocks, extremely low expense ratio of 0.03%, and improved positioning with expected 18% small-cap earnings growth in 2026-2027. Acknowledged as a reasonable alternative but considered inferior to VTI due to large-cap only focus and lack of mid-cap/small-cap exposure, despite being a perfectly valid portfolio choice.
Keywords: ETF, total stock market, diversification, small-cap stocks, earnings growth, low-cost investing
Insights:
- VTI: Positive: Recommended as the top single ETF choice due to broad diversification across 3,500 stocks, extremely low expense ratio of 0.03%, and improved positioning with expected 18% small-cap earnings growth in 2026-2027.
- VOO: Neutral: Acknowledged as a reasonable alternative but considered inferior to VTI due to large-cap only focus and lack of mid-cap/small-cap exposure, despite being a perfectly valid portfolio choice.
- VTWO: Positive: Referenced positively as a proxy for small-caps with different sector composition that provides diversification benefits when included in a portfolio.