An ETF to Match the Market
Vanguard Total Stock Market owns almost every publicly traded U.S. company worth at least $10 million.
If you just wanted to duplicate the U.S. stock market, you’d buy a fund that mimics Standard & Poor’s 500-stock index, right? Well, not exactly. The S&P index consists of 500 companies, most of them large. If you wanted to track the entire U.S. stock market, you’d need to own a fund that follows a total-market index.
Why not stick with the familiar 500? Because a total-market index holds more small and midsize companies, and over the long term those stocks have performed better than big-company stocks. Over the past 15 years, including so far in 2013, the Wilshire 5000 Total Market index, the best-known of the broad-market indexes, has beaten the S&P 500 11 times.
Vanguard Total Stock Market ETF (VTI), the largest of the all-market exchange-traded funds, marches to a different beat. In June 2013, Vanguard switched from tracking one less-popular benchmark, the MSCI US Broad Market index, to another, the CRSP U.S. Total Market index. Vanguard said at the time that the move would allow it to cut fees on Total Stock Market ETF, which today charges a microscopic 0.05% per year in expenses.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The ETF holds 3,639 stocks, representing nearly all U.S.-based firms with market values of at least $10 million. According to Morningstar, 19% of its assets are in midsize companies, 6% in small companies and 2% in “micro caps.” The ETF’s biggest holding is Apple; the smallest, Allen Organ.
-
6 Champagne Problems Successful Retirees FaceWhat do you do if your biggest financial threat is simply having too much of a good thing — money?
-
Congress is Set for a Busy WinterThe Kiplinger Letter The Letter editors review the bills Congress will decide on this year. The government funding bill is paramount, but other issues vie for lawmakers’ attention.
-
A Portfolio Checklist If You're Planning to Retire in 2027Are you planning on retiring in 2027? This portfolio checklist will help put you on the right path.
-
Small Caps Can Only Lead Stocks So High: Stock Market TodayThe main U.S. equity indexes were down for the week, but small-cap stocks look as healthy as they ever have.
-
Dow Adds 292 Points as Goldman, Nvidia Soar: Stock Market TodayTaiwan Semiconductor's strong earnings sparked a rally in tech stocks on Thursday, while Goldman Sachs' earnings boosted financials.
-
Stocks See First Back-to-Back Losses of 2026: Stock Market TodayRising geopolitical worries and a continued sell off in financial stocks kept pressure on the main indexes on Wednesday.
-
Visa Stamps the Dow's 398-Point Slide: Stock Market TodayIt's as clear as ever that President Donald Trump and his administration can't (or won't) keep their hands off financial markets.
-
Stocks Climb Wall of Worry to Hit New Highs: Stock Market TodayThe Trump administration's threats to Fed independence and bank profitability did little to stop the bulls on Monday.
-
Dow Hits a Record High After December Jobs Report: Stock Market TodayThe S&P 500 also closed the week at its highest level on record, thanks to strong gains for Intel and Vistra.
-
Nasdaq Takes a Hit as the Tech Trade Falters: Stock Market TodayThe Dow Jones Industrial Average outperformed on strength in cyclical stocks.
-
Dow Hits New High Then Falls 466 Points: Stock Market TodayThe Nasdaq Composite, with a little help from tech's friends, rises to within 300 points of its own new all-time high.
