Here is a comprehensive, step-by-step guide on how to buy VTI on Vanguard.
Investing in the market can feel a little intimidating, but with the right guidance, it's a straightforward and empowering process. Today, we're going to talk about a popular and powerful investment tool: Vanguard Total Stock Market ETF (VTI). This ETF is a great option for investors who want broad exposure to the entire U.S. stock market in a single, low-cost fund. Ready to dive in? Let's get started!
Step 1: Get Your Financial Ducks in a Row
Before you can even think about buying VTI, you need a place to hold it. Think of it like buying a car; you need a garage to park it in. For investing, that garage is a brokerage account. Vanguard is a brokerage firm, and to buy VTI through them, you'll need to open an account.
What you need: To open a Vanguard brokerage account, you'll typically need your personal information, such as your Social Security number, your bank account and routing numbers to fund the account, and your employer's name and address.
Check eligibility: It's important to note that Vanguard's services are primarily for U.S. residents. If you reside outside the U.S., you may need to use a different platform or explore your country's specific options for international investing. For instance, in India, you might use a platform like INDmoney to access U.S. ETFs.
Step 2: Open Your Vanguard Brokerage Account
This is the official starting line! Follow these sub-steps to get your account set up.
Sub-heading 2.1: The Online Application
Head to the Vanguard website and look for the "Open an account" or "Start investing" button. The process is designed to be quick, often taking only 5-10 minutes. You will be guided through a series of questions to set up your account.
Sub-heading 2.2: Choosing Your Account Type
Vanguard offers various account types, so choose the one that aligns with your financial goals:
Brokerage Account (Non-Retirement): This is a general investing account for any purpose, like saving for a down payment on a house or a new car. It offers flexibility as you can withdraw your money at any time.
Individual Retirement Account (IRA): If your goal is to save for retirement, an IRA (like a Traditional or Roth IRA) is a great choice as it offers tax advantages.
Sub-heading 2.3: Funding Your Account
Once your application is submitted and approved, you'll need to transfer money from your bank account into your new Vanguard brokerage account. This is usually done via a bank transfer (ACH). Make sure you have enough funds to cover the cost of the shares you want to buy. Your money will initially be held in a "settlement fund" within your account, which is like a holding area for cash before you invest it.
Step 3: Find and Research VTI
Now that you have your account and some cash in it, it's time to find the investment!
Sub-heading 3.1: Searching for VTI
Log in to your Vanguard account. Look for a "Buy & Sell," "Trade," or "Invest" section. In the search bar, type in the ticker symbol: VTI. This is the unique code for the Vanguard Total Stock Market ETF.
Sub-heading 3.2: Understanding the Fund
Before you buy, let's take a quick look at what VTI is. VTI is a passive index fund that tracks the performance of the CRSP US Total Market Index. This means it holds stocks from virtually every publicly traded company in the U.S., from massive corporations like Microsoft and Apple to smaller companies. This gives you instant diversification across the entire U.S. market.
Low Cost: One of Vanguard's biggest selling points is its low fees. VTI has an incredibly low expense ratio, which is the annual fee you pay to the fund. As of June 2025, the expense ratio is a mere 0.03%, which is significantly lower than the industry average. This is a huge advantage for long-term investors, as low fees can make a big difference in your returns over time.
Step 4: Place Your Order
You're at the final step! This is where you tell Vanguard how much VTI you want to buy.
Sub-heading 4.1: Entering the Order Details
On the trading page for VTI, you'll see a few options.
Choose the order type:
Market Order: This buys the shares at the current market price as soon as the order is executed. This is the simplest option but the price can fluctuate slightly before your order is filled.
Limit Order: This allows you to set a specific price you're willing to pay per share. If the market price goes down to your limit price, your order will be executed. This gives you more control over the price, but your order might not be filled if the stock never reaches your desired price. For beginners, a market order is often sufficient.
Enter the number of shares: Type in the number of VTI shares you want to purchase. You can also sometimes buy fractional shares, which allows you to invest a specific dollar amount, like $100, instead of a whole number of shares. This is a great option for those with smaller budgets.
Review the quote: The platform will show you the real-time price per share and the total estimated cost of your purchase. Make sure you have enough cash in your settlement fund to cover this cost.
Sub-heading 4.2: Preview and Submit
Once you've entered all the details, click on "Preview Order" or a similar button. Review everything carefully one last time—the ticker, the number of shares, the total cost, and the order type. If everything looks good, click "Submit" and you're done!
Congratulations! You've just become an owner of VTI, a diversified piece of the entire U.S. stock market. Now, just sit back, relax, and let your investment grow over the long term!
10 Related FAQ Questions
Here are some common questions you might have about buying VTI on Vanguard:
How to check the current price of VTI? You can check the real-time market price of VTI on the Vanguard platform itself, or on financial news websites and brokerage apps by searching for the ticker symbol, VTI.
How to find my VTI shares after buying them? Once your order is executed, you can view your VTI shares in your account portfolio under the "My Accounts" or "Holdings" section on the Vanguard website or mobile app.
How to sell VTI shares on Vanguard? To sell, go to the "Buy & Sell" or "Trade" section, select "Sell," enter VTI's ticker symbol, choose the number of shares you want to sell, and place your order.
How to reinvest the dividends from VTI? Vanguard offers a dividend reinvestment program (DRIP) for ETFs. You can usually set this up in your account settings, so that any dividends you receive are automatically used to buy more shares of VTI. This is a powerful way to compound your returns.
How to avoid the Vanguard account service fee? Vanguard has a $25 annual account service fee for some accounts, but it is often waived if you opt for electronic statements and other communications, or if you have a certain amount of assets invested with Vanguard (e.g., over $10,000).
How to transfer funds to my Vanguard account? The most common way to fund your account is via an electronic bank transfer (ACH), which you can set up directly from your bank account through the Vanguard website.
How to know if VTI is a good investment for me? VTI is considered a core, long-term holding for many investors due to its broad diversification and low cost. However, it's essential to consider your own financial goals and risk tolerance. It's always a good idea to research and consult with a financial advisor to determine if it fits your portfolio strategy.
How to set up automatic investments in VTI? Yes, you can set up automatic investments in VTI, which is a great strategy for dollar-cost averaging. Look for an option like "Automatic Investments" or "Recurring Investments" in your account to schedule regular purchases from your linked bank account.
How to buy fractional shares of VTI? On Vanguard, you can often buy ETFs in terms of a dollar amount rather than a number of shares. Look for the option to buy in "dollars" instead of "shares" on the trade screen. This allows you to purchase a fraction of a share.
How to check the dividend payment history of VTI? You can check the dividend payment history on the VTI fund page on Vanguard's website or on financial data websites. VTI typically pays a dividend on a quarterly basis.