VT and Chill: One Fund, No Fuss Investing for Small Business Owners
A single low-cost fund that owns nearly every public company in the world.
VTChill recommends buying one ETF (VT) that holds about 10,000 companies across 50 countries for a 0.06% expense ratio. For small business owners, this means no more guessing which stocks or sectors to pick, and no more time spent on investment research.
What VTChill Is and Why It Matters for Your Business
VTChill is a straightforward website that makes the case for owning the entire world’s stock market in one fund. The fund it points to is Vanguard’s Total World Stock ETF (ticker VT). VT holds roughly 10,000 companies from about 50 countries, with an expense ratio of 0.06% per year—that’s $600 on a $1 million investment.
For small business owners, time is money. You don’t have hours to read financial news, analyze earnings reports, or rebalance a portfolio. VTChill’s core message is that you can buy one fund, own nearly every public company in proportion to its size, and then get back to running your business. The fund rebalances itself as countries and companies grow or shrink, so you never have to move money between US and international funds.
The site also notes that VT began in 2008, and a simulation of the same world portfolio goes back to 1970. This gives you a long track record to evaluate, not just a recent trend.
The Problem with Picking Stocks or Timing the Market
VTChill presents strong evidence that trying to beat the market is usually a losing game. According to the site, over 15 years about 90% of active US funds trail their index, as shown in S&P’s SPIVA reports. The few winners are mostly lucky: a study of over 20 years of US funds found that after fees, the winners’ records look about like what chance alone would produce.
For a business owner, this means that paying a manager or trying to pick hot stocks is likely to cost you money and time. The site also points out that buying and selling at the wrong times costs the average fund investor about 1% a year, according to Morningstar’s Mind the Gap study. That’s more than most funds charge. One fund leaves little to tinker with, chase, or panic-sell.
VTChill also addresses common objections. For example, some people ask why not just buy the S&P 500. The site explains that the S&P 500 is about half of the world’s stock market, and VT owns the rest: US small and mid caps, and the nearly 40% that’s outside the US. No one knows which country leads the next 20 years, so owning all of them removes that guess.
How VT Handles Market Crashes and Currency Risk
VTChill is honest about risk. The site states that VT fell by about half in its first nine months (2008–2009) and by a third in early 2020. It recovered both times because the world’s companies kept earning. A single stock or sector might not come back, but a diversified world fund has historically recovered from every crash and gone on to new highs, though sometimes taking years.
For a small business owner, this means you need to be prepared for drops. The site advises keeping what you’ll spend in the next few years out of stocks, and not selling during a crash. If a 50% drop would make you sell, VTChill suggests holding some bonds next to VT.
Currency risk is also addressed. Nearly 40% of VT is in companies priced in other currencies. A falling dollar helps you, a rising one hurts. Over long periods it roughly evens out, and holding many currencies means you aren’t betting everything on one. Big US companies also earn a large share of their sales abroad, so even an S&P 500 fund carries some currency risk.
Getting Started: What to Do and What to Avoid
VTChill recommends buying the ETF version (VT) because it costs a little less (0.06% vs. 0.09% for the mutual fund VTWAX), has no minimum, trades all day, and any broker sells it. The mutual fund needs $3,000 to start and trades once a day, but many brokers now invest automatically in ETFs too, so VT is the simpler default.
The site also warns against chasing themes like tech, growth, or innovation funds. Everyone already knows which companies are growing fast, so their prices already reflect it. Growth has had great decades and terrible ones: the Nasdaq took 15 years to get back to its 2000 peak, and a well-known innovation fund fell about 80% from its 2021 peak. You already own the big tech companies through VT—they are its largest holdings—and VT owns tomorrow’s winners too.
For business owners outside the US, VTChill notes that VT is a US fund and may be unavailable or have tax issues. It recommends buying a world index fund based where you live, such as an Irish fund tracking the FTSE All-World index (like Vanguard’s VWRA or VWCE) in Europe and the UK. The Bogleheads wiki covers each country.
Takeaways
- VTChill recommends one global fund (VT) that owns about 10,000 companies across 50 countries for a 0.06% expense ratio, eliminating the need to pick stocks or time markets.
- Over 15 years, about 90% of active US funds trail their index (S&P SPIVA reports), and buying/selling at the wrong times costs the average fund investor about 1% a year (Morningstar’s Mind the Gap).
- VT has recovered from crashes (fell ~50% in 2008–2009, ~33% in early 2020) because the world’s companies kept earning; holding through drops is key.
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