Vanguard Total Stock Market ETF Sees Strong Fund Flows Despite Performance Dip

Vanguard Total Stock Market ETF ( $VTI ) has fallen by 0.60% in the past week. It has experienced a 5-day net inflow of $1.18 billion.
This is due, in part, to market sentiment on some of the ETF’s largest holdings. For example:

• Nvidia Corporation has been a standout performer in the AI chip market, with its stock experiencing a remarkable surge of over 1,400% in the past three years. This growth is attributed to its dominant position in the global data-center GPU market and strategic investments, such as a planned $1 billion investment in AI startup Poolside. Analysts remain optimistic about Nvidia’s future, maintaining a Strong Buy consensus and anticipating continued strong performance in upcoming quarters. Despite competition, Nvidia’s profitability and market leadership provide a significant advantage, with ongoing innovations and partnerships further solidifying its position.
• Microsoft has seen its strategic investment in OpenAI pay off significantly, with its stake now valued at $135 billion. This comes as Microsoft faces challenges in its Xbox hardware sales, which have declined by 29%. However, the company’s focus on AI development, including collaborations with American universities, is part of its broader strategy to enhance its AI capabilities. Analysts are optimistic about Microsoft’s future, maintaining a Strong Buy consensus with a projected 20.16% upside potential in its stock price.
• Apple Inc has reported robust financial results, surpassing Wall Street’s expectations with an 8% year-over-year increase in sales, driven by strong demand for the iPhone 17 and its Services segment. Despite some concerns about its position in the AI space, Apple continues to lead in stock buybacks and is expected to introduce new AI features. Analysts maintain a Moderate Buy rating for Apple, with expectations of continued growth supported by new product innovations and AI advancements.