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What Is a Total Market ETF?

Last updated: June 2026

Quick Answer

A total market ETF holds virtually every publicly traded stock in a given market. VTI covers the entire US market (3,700+ stocks). Total market ETFs provide the broadest possible diversification.

The Complete Answer

A total-market ETF aims to hold essentially every public company in a market, not just the biggest ones. VTI, the most popular example, owns roughly 3,700 US stocks — large, mid, small, and micro-cap — in a single fund, which is broader than an S&P 500 fund that holds only the 500 largest.

In practice a total-market fund and an S&P 500 fund behave almost identically, because both are market-cap weighted and the giant companies dominate either way. The total-market fund's extra thousands of small and mid-cap names add only a few percent of weight, so the return difference between VTI and VOO is usually a rounding error.

The appeal is maximum diversification with one decision and a rock-bottom fee — VTI charges 0.03%, about $3 a year per $10,000. You never have to wonder whether you missed the next big mid-cap company; if it is publicly traded in the US, you already own a slice of it.

Total-market funds exist beyond US stocks too: VXUS covers the total international market and BND covers the total US bond market. Pairing VTI, VXUS, and BND is the foundation of the three-fund portfolio, giving you near-complete global coverage in three holdings.

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Related Reading

Best ETFs for Beginners→ETF Basics→How to Buy Your First ETF→VOO Review→

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