It holds about 3,300 stocks and has returned about 8.71% per year for the past decade. You can learn more about the standards we follow in producing accurate, unbiased content in our. Prior to that, competitive ETFs from companies like Vanguard, Fidelity, and Schwab led the competition with low fees well under 0.1%. Compare multiple ETFs for fees and other features before you buy them. In fact, 23% of VTSMX's assets lie within its top 10 holdings. Active traders prefer SPY due to its extremely high liquidity. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This fund offers near-identical performance to the Dow Jones US Total Stock Market index and over the last ten years moderately outperformed the large-blend category. Assets under management: $1.4 billion. Unlike the other funds, WFIVX alone includes Alphabet Inc Class C in its top quintet of stock holdings. In August 2018, Fidelity released two new ETFs that are 100% fee-free. The best overall ETF comes from the largest mutual fund company: Vanguard. Top tech ETF – Invesco QQQ Trust (QQQ) 2019 performance: +38.6 percent. Symbol A total stock fund is a mutual fund or exchange-traded fund that holds every stock in a selected market. It charges a very competitive 0.060% expense ratio. And here are the recent historical returns of the S&P 500 and Total Stock Market index, as of January 4, 2019:[Data: Morningstar]The correlation in returns between the S&P 500 and the Total Stock Market Index is very, very high. What are the Disadvantages of an Index Fund? Fidelity Total Market Index Fund (FSKAX): With an expense ratio of just 0.015%, FSKAX is currently the leader for lowest expense ratio among total stock index funds. Developing market funds are tempting, but beware that they are much riskier than investments in developed markets. 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. Accessed March 16, 2020. The Russell 2000 is an index that tracks 2,000 small-cap stocks. The largest Total Market ETF is the Vanguard Total Stock Market ETF VTI with $189.22B in assets. VEA follows the FTSE Developed All Cap ex US Index. Some investors argue that smaller stocks have more room to grow than bigger stocks, while contrarians would argue that smaller stocks are riskier and more volatile. Like the other funds on the list, WFIVX targets technology, financial services, healthcare, consumer cyclical, and industrial sectors, though its top ten holdings comprise 26% of its portfolio. IWV's sector allocations and top holdings are similar to those of the Vanguard and Schwab funds. That offers you lots of diversity with some degree of a safety net as all investments are focused in the US. The major broad-based indexes used as benchmarks are the Russell 3000, the S&P 500, and the Wilshire 5000 Total Market Index. Should You Invest in a Total Stock Index Fund or an S&P 500 Index Fund? Net assets: $87 billion. Below are four of today's most prominent ones. Meanwhile, some total market exchange-traded funds are on NTF platforms. While past performance is not a guarantee of future performance and the market can go down at any time, if you have a long-term horizon this index fund is a great choice. The iShares Russell 3000 (IWV) is an exchange traded fund that tracks the performance of the Russell 3000 Index, which measures the investment results of the broad U.S. equity market. Compare their price, performance, expenses, and more. Switch from mutual funds to ETFs by identifying the “best fit” ETFs based on underlying holdings. iShares Core U.S. REIT ETF. What Are the S&P 500, Nasdaq, and the Dow? Learn everything you need to know about Vanguard Total Stock Market ETF (VTI) and how it ranks compared to other funds. ETFs allow you to buy and sell funds like a stock on a popular stock exchange. This is different from traditional mutual funds, which only allow you to trade at the end of a business day. While the index consists of around 3,115 companies, the fund typically holds 1,000 to 2,500 stocks. "What Are ETFs?" Vanguard Total Bond Market ETF (BND) Expense Ratio: 0.035% A total bond market fund rounds out this three-piece retirement portfolio of Vanguard ETFs. Among the best such funds, you'll find Schwab U.S. Broad Market (NYSEMKT:SCHB), iShares Core S&P Total U.S. Stock Market (NYSEMKT:ITOT), and Vanguard Total World Stock (NYSEMKT:VT). The second Neutral rated ETF for this week is the Vanguard Total Stock Market ETF VTI +0.2%. Should You Invest in Broad Market Index Funds? If you want to invest in gold without going into a store and buying bars of the precious metal, your best option is the GLD ETF. Be sure to consider the underlying assets—when you buy an ETF, you are not buying shares of a company’s stock or bonds directly. ... Vanguard Total Stock Market ETF: $192.51 $199,005.00 3,420,965 19.26% Equity VOO: Vanguard S&P 500 ETF: $340.16 $174,421.00 3,003,715 16.63% Equity QQQ: Invesco QQQ: $308.98 $147,648.00 40,354,332 46.10% Equity VEA: Vanguard FTSE Developed Markets ETF: $47.19 $86,806.90 8,075,537 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. But compared to an S&P 500 fund, managers of the iShares Russell 2000 ETF have four times as many stocks to buy and sell to keep the index fund in-line with the index. Accessed Dec. 5, 2020. In practice they perform similarly to S&P 500 ETFs, but a subset of their assets are invested in thousands of smaller companies. Historically the S&P 500, which in some ways is a proxy for the overall United States economy, returns about 10% per year over a long horizon. 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 NASDAQ 100 is made up of the 100 largest stocks on the NASDAQ stock exchange, traditionally a home for many technology companies. These cutting-edge ETFs are a very new concept. Best No-Fee: Fidelity ZERO Total Market Index Fund (FZROX), Best for Active Traders: SPDF S&P 500 ETF (SPY), Best for Small-Cap Stocks: iShares Russell 2000 ETF (IWM), Best for US Dividends: Schwab U.S. Dividend Equity ETF (SCHD), Best for NASDAQ Large-Cap Stocks: Invesco QQQ (QQQ), Best International: Vanguard FTSE Developed Markets (VEA), 00 Lowest Expense Ratio ETFs – Cheapest ETFs. Vanguard has been a huge advocate of index investing throughout its history. It charges a 0.0945% expense ratio, which is higher than Vanguard’s competing ETF. Vanguard Total Stock Marketis an immense fund, holding almost 3,600 different stocks. Switch from mutual funds to ETFs by identifying the “best fit” ETFs based on underlying holdings. Dividend yield: 3.9% Expenses: … % … If you want to invest in an ETF for free, this is one of the first no-fee ETFs made available. It’s U.S. Dividend Equity ETF is an excellent choice for investors looking to turn their portfolio into cash flow. Check your performance of ETFs. Typically, riskier investments lead to higher returns, and ETFs follow that pattern. The Vanguard Total Stock Market Index Fund has a total of 3,576 equity holdings in stocks, two in bonds, and 13 in other holdings. VTI is the most diversified total stock ETF available. FTSE4Good Index Series is a series of equity indexes that include companies that meet globally-recognized social responsibility standards such as ESG. 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, the S&P 500, or the Wilshire 5000 Total Market Index, as its benchmark. Vanguard Total Stock Market ETF (VTI) Schwab U.S. Broad Market ETF (SCHB) These are some of the least expensive ETFs in the world. SPY launched in 1993 as the first exchange-traded fund. It is made up of the smallest 2,000 of the Russell 3000 index measured by market capitalization. Here's a List of the Many ETFs and ETNs That Trade Options, You Only Need These 7 Vanguard ETFs to Build a Complete Portfolio. Warren Buffet himself has even recommended the Vanguard’s S&P 500 index fund by name. "Vanguard Total Stock Mkt Idx Inv VTSMX." These Types of ETFs Are Best for Roth IRAs, What to Know Before Buying Inverse and Short ETFs, What the S&P 500 Tells You About America's Health, The Pros, Cons and Differences Between QQQ and TQQQ. SWTSX currently focuses on technology (23.81% allocation), healthcare (14.39%), financial services (12.58%), cyclical consumer (12.05%), and communication services (10.54%). Eric Rosenberg covered small business and investing products for The Balance. Vanguard Total Stock Market Index ETF is one of the best core U.S. stock funds available. Consumer cyclical and industrial companies round out the top five sectors, with 12.06% and 9.21% allocations, respectively. The Vanguard Total Stock Market Index (VTSMX) seeks to track the investment results of the CRSP U.S. Total Market Index, comprising approximately 100% of the investable U.S. stock market. It's therefore not surprising to see an ETF that aims to offer exposure to the entire U.S. stock market at the top of the list. The underlying stocks that these types of funds invest in are often highly diverse and may include both large-cap stocks issued by well-known corporations, as well as small-cap stocks issued by lesser-known companies.