How to Invest Them
In this section, we will explore how to invest in the Total Stock Market Index and the S&P 500 index, and discuss some important tips for investing in these two instruments.
Performance of the Indices
Investors will be surprised to find that the returns of the Total Stock Market Index and the S&P 500 Index are similar. However, many people believe that small-cap stocks outperform large-cap stocks in the long run, which means that the Total Stock Market Index will outperform the S&P 500 in terms of long-term returns.
Final Conclusion
The Total Stock Market Index is slightly more diversified than the S&P 500. Since both types of indices heavily focus on large-cap stocks, the performance of the two funds is closely linked. However, investors can achieve greater diversification and potentially higher performance by determining their own asset allocations.
Frequently Asked Questions
In this section, we will answer some common questions about the Total Stock Market Index and the S&P 500, such as the percentage of U.S. stock market holdings covered by the S&P 500 and how to invest in these two indices.
Source: https://www.thebalancemoney.com/total-stock-market-vs-sandp-500-2466403
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