Best Total Market ETFs Right Now

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Contributor, Benzinga
November 5, 2024

Invest in the best total market ETFs today with Interactive Brokers.

There are more than 8,000 companies listed on the NASDAQ and the NYSE. Although you may not be able to invest in all of the companies listed on the stock exchange, total market ETFs offer you the next best thing. Total market ETFs can give your financial portfolio instant diversification at affordable rates. 

Depending on your financial goals, you can invest in broad-based ETFs that track indices that hold assets in over 500 companies. Total market ETFs can cover a wide range of companies across industries, countries, asset classes and asset types.  

Quick Look at the Best Total Market ETFs:

3 Total Market ETFs by AUM

You can gain considerable diversity when you invest in these ETFs. But you should track and compare returns from stock investments made in singular companies every quarter or annually. If the numbers indicate that you may get better profits from investing in particular companies rather than total market ETFs, you can trade your assets accordingly. 

Consider key factors such as expense ratios, historical performance, liquidity and the AUM before you invest in ETFs. Benzinga has hand-picked the following these ETFs for you to invest.

1. iShares Core S&P Total U.S. Stock Market ETF (NASDAQ: ITOT)

iShares Core S&P Total U.S. Stock Market ETF has been on the market since 2004. It tracks the S&P Composite 1500 Index and offers exposure to a broad bundle of domestic stocks from small-cap (600 stocks) and mid-cap (400 stocks) companies. A total number of 3,622 companies are listed in this total market ETF. 

iShares Core S&P Total U.S. Stock Market ETF has a low expense ratio of 0.03% with a total AUM of $61.6 billion. It has high liquidity with an average daily trade volume of 1,904,765 shares. This total market ETF has a proven 5-year returns record of 95.81%. 

iShares Core S&P Total U.S. Stock Market ETF (ITOT)

Historical performance of iShares Core S&P Total U.S. Stock Market ETF over the last 5 years. 
Source – NASDAQ

2. Schwab U.S. Broad Market ETF (NASDAQ: SCHB)

Schwab U.S. Broad Market ETF has been on the market since 2009. It tracks the Dow Jones U.S. Broad Stock Market Total Return Index and offers exposure to the all-cap equity ETF space across various sectors. A total number of 2,381 companies are listed in this total market ETF. 

Schwab U.S. Broad Market ETF has a low expense ratio of 0.03% with a total AUM of $31 billion. It has high liquidity with an average daily trade volume of 2,362,737 shares. This total market ETF has a proven 5-year returns record of 15.21%. 

Historical performance of Schwab U.S. Broad Market ETF over the last 5 years.

Historical performance of Schwab U.S. Broad Market ETF over the last 5 years. Source – NASDAQ

3. Vanguard Total Stock Market ETF (NASDAQ: VTI)

Vanguard Total Stock Market ETF has been on the market since 2001. It tracks the CRSP U.S. Total Market Index and offers exposure to the U.S. equity markets consisting of different securities across all sectors. A total number of 1,577 companies are listed in this total market ETF.

Vanguard Total Stock Market ETF has a low expense ratio of 0.03% with a total AUM of $438 billion. It has high liquidity with an average daily trade volume of 3,820,645 shares. This total market ETF has a proven 5-year returns record of 96.95%. 

Vanguard Total Stock Market ETF (VTI)

Historical performance of Vanguard Total Stock Market ETF over the last 5 years. 
Source – NASDAQ

Best Online Brokers for These ETFs

You can find the top ETFs to invest with an online broker. Most online brokers let you trade ETFs commission-free. Here’s a rundown of the best online brokers to help you get started on your investment journey.   

Self Direct Investment by JP Morgan
Best For
  • Chase Customers
securely through Self Direct Investment by JP Morgan's website

1. You Invest by J.P. Morgan

Chase You Invest is an easy-to-use online broker introduced by J.P. Morgan. You can open a You Invest Trade account with a $0 minimum deposit or open a You Invest Portfolio account with a $500 minimum deposit. 

Chase You Invest allows you to trade unlimited online stocks, ETFs and options commission-free. You can conveniently research, trade and manage your investments on the platform. Chase Your Invest is regulated by the Financial Industry Regulatory Authority (FINRA).  

Firstrade
Best For
  • Mobile Investing
securely through Firstrade's website

2. Firstrade

Established in 1985, Firstrade is an industry-leading online broker. You can open an account with a $0 minimum deposit. It has extended hours trading from 8 a.m. to 8 p.m.

You can trade ETFs at a $0 commission rate on Firstrade. You can access more than 2,200 ETFs from over 100 ETF providers on the platform. Firstrade is regulated by the SEC and FINRA.  

TD Ameritrade
Best For
  • Forex and investing app
securely through TD Ameritrade's website

3. Charles Schwab

With a total of $1 trillion in assets, Charles Schwab is the preferred online broker for 11 million traders. You can open an account with a $0 minimum deposit on the platform. 

Charles Schwab offers commission-free ETFs for you to trade, except for broker-assisted investments that are priced at $25 per trade. With the ETF Comparison Tool, you have the advantage of finding ETFs that match your financial goals based on performance, cost and 3rd-party analysts rankings. Charles Schwab is regulated by FINRA.  

Why Invest in Total Market ETFs?

Here are the top 3 reasons to invest in these ETFs.

1. Total Market ETFs Include Small-, Mid- and Large-Cap Companies

These ETFs offer you a simple solution to expand your portfolio of investments. Most ETFs in the total market category track indices that hold stocks in small-cap, mid-cap and large-cap companies. 

For example, you can invest in Schwab U.S. Broad Market ETF (NASDAQ: SCHB) and own stocks in Microsoft Corp (NASDAQ: MSFT) that has a total assets under management (AUM) of $1 trillion, SunPower Corp (NASDAQ: SPWR) with a total AUM of $1 billion and Legacy Housing Corp (NASDAQ: LEGH) with an AUM of $221 million — with 1 single trade. Not only that, but you’ll also own stocks in 2,454 companies with 1 investment. 

2. These ETFs Expose You to Multiple Industries

Total market ETFs can expose you to a broad spectrum of companies from many industries. You can screen these ETFs on their homepages, etfdb.com or Morningstar.com to get information of the included companies along with their regions and the percentage of their holdings from each industrial sector. 

For example, investing in Schwab U.S. Broad Market ETF exposes you to companies in technology (29.72%), financial services (13.47%), healthcare (11.67), consumer discretionary (10.37%) and others. As a result of a single trade, you will also own stocks in companies from North America, the United Kingdom and Asia. 

3. Total Market ETFs Cost You Less to Invest

The expense ratios of total market ETFs are usually lower than 0.5%. In most cases, you will be spending less than $50 per trade while investing in these ETFs. 

For example, the Schwab U.S. Broad Market ETF has a low expense ratio of 0.03%. This means it will cost you a meager $3 per year for every $10,000 you invest out of your pocket. Another example is Schwab Fundamental U.S. Broad Market Index ETF (NASDAQ: FNDB) that has an expense ratio of 0.25%. This means it will cost you $25 per year for every $10,000 you invest in this total market ETF.   

Total Market ETFs Biggest Gainers and Losers

Here’s a quick look at total market ETFs on the stock exchange with the best profits and worst losses. 

Premarket Total Market ETFs

Here’s a quick look at the premarket positions of these ETFs to help you predict their price movements during trading sessions. 

Stock Movers

Session: Dec 19, 2024 4:00PM EST - Dec 20, 2024 9:29AM EST

Aftermarket Total Market ETFs

Here’s a quick look at the positions of these ETFs after major stock exchanges are closed for trading.  

Total Market Penetration

You have an excellent opportunity to buy into the majority of companies listed on the stock exchange with these ETFs. These ETFs can strengthen the diversity of your portfolio by letting you choose domestic and global stocks to invest in. You should carefully examine the holdings in total market ETFs periodically to avoid fund overlaps. 

Frequently Asked Questions

Q

What are total market ETFs?

A

Total market ETFs are exchange-traded funds that aim to track the performance of a broad market index, representing the entire stock market. They include large-cap, mid-cap, and small-cap stocks across various sectors, providing investors with diversified exposure.

 

Q

Are total market ETFs a good investment for beginners?

A

Yes, total market ETFs are often recommended for beginners due to their diversification benefits and simplicity. They enable new investors to gain exposure to a wide range of stocks without needing to pick individual stocks.

 

Q

Is there a risk associated with total market ETFs?

A

Like all investments in the stock market, total market ETFs come with risks, including market volatility and economic downturns. However, their broad diversification can help mitigate some risks associated with individual stocks.