A total stock market index fund is a mutual fund or exchange-traded fund (ETF) that tracks a total stock market index designed to represent the entire stock market.
Total market indexes can list all stocks across all industries to represent the performance of the overall equity market, or the index managers can choose stocks from each sector that best represent it and list them on the index. Fund managers do the same—they can hold all of the stocks on an index to mirror it or choose stocks from it they believe best reflect the index and market performance.
In this article, we highlight four of the most prominent total market index funds, including their one-year performance, investment minimums, and expense ratios.
Key Takeaways
- A total stock market index fund holds the stocks listed on a total equity market index.
- The major broad-based indexes used as benchmarks include the CRSP U.S. Total Market Index, the Dow Jones U.S. Total Stock Market Index, the Russel 3000, and the Wilshire 5000.
- The best total market index funds by popularity include the Vanguard Total Stock Market Index Admiral Shares (VTSAX), the Schwab Total Stock Market Index Fund (SWTSX), the iShares Russell 3000 (IWVB), and the Wilshire 5000 Index Investment Fund (WFIVX).
The Vanguard Total Stock Market Index Admiral Shares (VTSAX)
The Vanguard Total Stock Market Index Admiral Shares (VTSAX) seeks to track the investment results of the CRSP U.S. Total Market Index. The fund is designed to provide investors exposure to the entire U.S. equity market, which includes small, mid-sized, and large companies. It is the largest mutual fund holder of Amazon stock. The fund’s goal is to provide low-cost, broad exposure to the equity markets by investing in companies that primarily trade on the New York Stock Exchange (NYSE) and NASDAQ.
Some of the characteristics of the fund include:
- Total net assets: $1.6 trillion
- One year return: 25.61% as of June 20, 2024
- Expense ratio: 0.04% as of June 20, 2024
- Investment minimum: $3,000
For those who can’t meet the $3,000 initial investment requirement, Vanguard also offers an exchange-traded fund (ETF) called the Vanguard Total Stock Market ETF (VTI). The ETF version is similar to the VTSAX and reduces the costs to the price of a single ETF share.
Equity Sector Diversification
Below are the weightings of the major industries within the VTSAX portfolio:
- Technology companies: 35.50%
- Consumer discretionary: 13.70%
- Industrials: 12.60%
- Healthcare companies: 11.50%
- Financial services: 10.90%
Stock Holdings
The Vanguard Total Stock Market Index Admiral Shares is considered a large-cap blend, evidenced by some of its top 10 holdings, which make up 23.68% of the fund as of June 20, 2024:
- Apple, Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Amazon.com (AMZN)
- Alphabet Inc. Class C (GOOG)
- Meta (META)
The Schwab Total Stock Market Index (SWTSX)
The Schwab Total Stock Market Index (SWTSX) tracks the total return of the entire U.S. equity market as measured by the Dow Jones U.S. Total Stock Market Index. The fund is designed to be a comprehensive blend of large, small, and mid-sized corporations. The SWTSX has no investment minimum.
Some of the characteristics of the fund include:
- Assets under management: $23.2 billion
- One-year return: 29.33% as of June 20, 2024
- Expense ratio: 0.03%
- Investment minimum: None
Equity Sector Diversification
Below are the weightings of the major industries within the SWTSX as of June 20, 2024:
- Information technology: 28.00%
- Financial services: 13.80%
- Healthcare: 12.30%
- Consumer discretionary: 10.50%
- Industrials: 10.00%
Stock Holdings
The SWTSX’s top 10 holdings comprise approximately 27.79% of the portfolio and include the following as of June 20, 2024:
- Apple, Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Amazon.com (AMZN)
- Meta (META)
- Nvidia (NVDA)
- Alphabet Inc. Class A (GOOGL)
The iShares Russell 3000 ETF (IWV)
The iShares Russell 3000 (IWV) by BlackRock Inc. is an exchange-traded fund (ETF) that tracks the performance of the Russell 3000 Index, which measures the investment results of the broad U.S. equity market. Like its peers, IWV uses an indexing approach to select a sample of stocks that represent the underlying benchmark.
Some of the characteristics of the fund include:
- Assets under management: $13.7 billion
- One year return: 29.17% as of June 20, 2024
- Expense ratio: 0.20%
- Investment minimum: None
Equity Sector Diversification
IWV’s sector allocations are similar to those of the Vanguard and Schwab funds. As of June 20, 2024, the top industries within IWV include:
- Information technology: 27.51%
- Financial services: 13.85%
- Healthcare: 12.41%
- Consumer discretionary: 10.44%
- Industrials: 10.06%
Stock Holdings
Similar to the previous two funds, IWV also has more than 27.79% of its assets weighted in its top 10 holdings as of June 20, 2024. Some of those holdings include:
- Apple, Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Amazon.com (AMZN)
- Meta (META)
- Alphabet Inc. (GOOGL)
Important
Small stocks listed in a total market index fund are often thinly traded, which may result in high trading spreads and significant transaction costs.
The Wilshire 5000 Index Investment Fund (WFIVX)
The Wilshire 5000 Index Investment Fund (WFIVX) is a mutual fund that tracks the investment results of the Wilshire 5000 Index, a capitalization-weighted index of the market value of all actively traded U.S.-headquartered stocks. The fund typically holds more than 3,000 stocks.
Some of the characteristics of the fund include:
- Assets under management: $260 million
- One year return: 23.79% as of June 20, 2024
- Expense ratio: 0.6%
- Investment minimum: $1,000
Equity Sector Diversification
The sector allocations for WFIVX as of June 20, 2024 include:
- Information technology: 27.61%
- Financial services: 13.6%
- Healthcare: 12.26%
- Consumer discretionary: 10.37%
- Industrials: 10.05%
Stock Holdings
Similar to the previous funds, WFIVX also has more than 26% of its assets weighted in its top 10 holdings as of June 20, 2024. Some of those holdings include:
- Apple, Inc. (AAPL)
- Microsoft Corp. (MSFT)
- Amazon.com (AMZN)
- Alphabet Inc. (GOOG)
- Meta (META)
- Nvidia (NVDA)
| Total Stock Market Index Fund | Assets Under Management | One Year Return | Expense Ratio |
| Vanguard Total Stock Market Index Admiral Shares (VTSAX) | $1.6 trillion | 25.61% | 0.04% |
| Schwab Total Stock Market Index (SWTSX) | $23.1 billion | 29.33% | 0.03% |
| iShares Russell 3000 ETF (IWV) | $13.7 billion | 29.17% | 0.20% |
| Wilshire 5000 Index Investment Fund (WFIVX) | $260 million | 23.79% | 0.60% |
What Is a Total Stock Market Index Fund?
A total stock market index fund is a mutual fund or exchange-traded fund (ETF) that tracks an equity index such as the Russell 3000 Index or the Wilshire 5000 Total Market Index as its benchmark.
Should I Invest in a Total Market Index Fund?
Whether you should invest in a total market index fund depends on your investing goals, current financial circumstances, and your risk tolerance. It’s best to talk to a financial advisor to learn what might be best for your situation.
What Is the 10-Year Return on VTSAX?
VTSAX had a 10-year return of 12.03% as of June 20, 2024. This was slightly lower than its benchmark index, the CRSP U.S. Total Market Index, which had a 10-year return of 12.05%.
The Bottom Line
A total stock market index fund is a fund that holds stocks that represent the entire stock market. These funds can, but don’t have to, hold every stock on the market. Generally, the funds track an index that represents the entire market—there are more than 8,000 stocks on the market, but most total market indexes do not use them all to represent the market.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the funds discussed.
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