Total US Stock Market Index
Historical returns and performance of the entire U.S. stock market
What is the Total US Stock Market Index?
The Total US Stock Market Index represents virtually the entire investable U.S. stock market, including large-, mid-, small-, and micro-cap stocks. It typically contains over 4,000 companies and covers nearly 100% of the U.S. equity market.
This is the broadest possible exposure to U.S. stocks in a single investment. It's market-cap weighted, so large companies like Apple and Microsoft still dominate, but you also get exposure to thousands of smaller companies.
On StocksBio, we use VTI (Vanguard Total Stock Market ETF) as our benchmark. VTI is one of the most popular and cost-effective ways to invest in the total market, with an expense ratio of just 0.03%.
Total Market Historical Returns
Based on VTI ETF data. $1,000 invested at the start of each period.
Growth of $10,000 in the Total Market
How a $10,000 investment in VTI would have grown over time. Despite crashes in 2008, 2020, and 2022, the long-term trend has been consistently upward.
Total Market Annual Returns by Year
Year-by-year performance via VTI. The total market index has been positive in roughly 73% of calendar years.
| Year | Return | Performance |
|---|---|---|
| 2026 (YTD) | -2.7% | |
| 2025 | +17.1% | |
| 2024 | +23.8% | |
| 2023 | +26.1% | |
| 2022 | -19.5% | |
| 2021 | +25.7% | |
| 2020 | +21.1% | |
| 2019 | +30.7% | |
| 2018 | -5.2% | |
| 2017 | +21.2% | |
| 2016 | +12.8% | |
| 2015 | +0.4% | |
| 2014 | +12.6% | |
| 2013 | +33.5% | |
| 2012 | +16.4% | |
| 2011 | +1.0% | |
| 2010 | +17.4% | |
| 2009 | +28.9% | |
| 2008 | -37.0% | |
| 2007 | +5.4% | |
| 2006 | +15.7% | |
| 2005 | +6.3% | |
| 2004 | +12.8% | |
| 2003 | +30.8% | |
| 2002 | -20.5% | |
| 2001 (YTD) | -6.1% |
Total Market CAGR (Compound Annual Growth Rate)
The Total Market Index closely tracks the S&P 500 (since large-caps dominate both), but includes additional exposure to mid-cap, small-cap, and micro-cap stocks. This provides slightly more diversification and exposure to emerging growth companies.
Total Market Best and Worst Years
Best Years
Worst Years
Despite severe bear markets, the Total Market Index has always recovered and made new all-time highs. Patience has historically been rewarded.
Total Market Monthly Statistics
Total Market Monthly Returns Heatmap
Month-by-month returns for the last 10 years. Like the S&P 500, September tends to be the weakest month and November-December tend to be strong.
Total Market Major Crashes and Bear Markets
Every major drawdown over 15% from peak to trough. Bear markets occur roughly every 5-7 years.
| Peak | Trough | Decline | Context |
|---|---|---|---|
| 2002-09 | -30.9% | Market correction | |
| 2007-10 | 2009-02 | -50.8% | Financial Crisis |
| 2019-12 | 2020-03 | -20.8% | COVID-19 crash |
| 2021-12 | 2022-09 | -24.8% | Fed rate hikes |
The One-Fund Portfolio: Why VTI Is Enough
Jack Bogle's Insight: Own All of It
Vanguard founder Jack Bogle championed a simple idea: instead of trying to pick winners, own the entire market. Don't guess which sector will outperform or which small-cap will become the next mega-cap. Just buy everything, hold it, and let the market do the work. VTI is the purest expression of that philosophy.
VTI Holds 4,000+ Stocks Across All Market Caps
Unlike the S&P 500 (which only covers 500 large companies), VTI tracks the CRSP US Total Market Index and holds virtually every publicly traded U.S. company. When you buy VTI, you own a slice of more than 4,000 stocks, from the largest mega-caps down to tiny micro-caps.
Market Cap Breakdown
Because VTI is market-cap weighted, the allocation naturally reflects the true size of each segment:
The VTI + VXUS 2-Fund Portfolio
For investors who want global coverage, the simplest approach is a 2-fund portfolio: VTI for all U.S. stocks and VXUS for all international stocks. A common split is 60/40 or 70/30 in favor of U.S. stocks. This gives you exposure to virtually every publicly traded company on Earth for a blended expense ratio of about 0.05%. Compare VTI vs VXUS.
Simplicity: One Fund, 0.03% Fee, Automatic Rebalancing
VTI charges just 0.03% per year -- that's $3 for every $10,000 invested. Because it's market-cap weighted, it rebalances automatically: as companies grow or shrink, their weight in the index adjusts naturally. There's no need to buy or sell anything. One fund, set it and forget it.
Understanding the Total Market Index
Why Choose Total Market Over S&P 500?
The Total Market Index offers several advantages:
- Maximum diversification: 4,000+ stocks vs 500
- Small-cap exposure: Includes high-growth small companies
- True market representation: Covers nearly 100% of investable U.S. equity
- Lower cost: VTI has 0.03% expense ratio vs 0.09% for SPY
Total Market vs S&P 500 Performance
Historically, the Total Market and S&P 500 perform very similarly because large-caps dominate both. The main difference is during periods when small-caps outperform (typically early economic recoveries) or underperform (typically during recessions).
VTI vs Other Total Market ETFs
On StocksBio, we use VTI (Vanguard Total Stock Market ETF). Other popular options include:
- ITOT (iShares) - 0.03% expense ratio
- SPTM (SPDR) - 0.03% expense ratio
- SCHB (Schwab) - 0.03% expense ratio
All track similar indices and have nearly identical performance.
Frequently Asked Questions
What is the Total US Stock Market Index?
The Total US Stock Market Index represents virtually the entire investable U.S. stock market, including large-, mid-, small-, and micro-cap stocks. It typically contains over 4,000 companies and covers nearly 100% of U.S. equity market capitalization. VTI (Vanguard Total Stock Market ETF) is the most popular way to invest in it.
What is the difference between VTI and VOO?
VTI tracks the entire US stock market (4,000+ stocks across all market caps) while VOO tracks only the S&P 500 (500 large-cap stocks). Both cost 0.03% per year. VTI gives you additional exposure to mid-cap, small-cap, and micro-cap stocks. Historically, their returns are very similar since large-caps dominate both.
What is the average annual return of VTI?
VTI has historically returned about 10% per year on average before inflation. Over the past 10 years, the CAGR has been +13.8%. Returns closely track the S&P 500 since large-cap stocks dominate the total market index.
How does VTI compare to the S&P 500?
VTI and the S&P 500 perform very similarly because large-caps (which both hold) dominate the total market. The key difference is during periods when small-caps outperform (typically early economic recoveries) or underperform (during recessions). VTI offers slightly more diversification with 4,000+ stocks vs 500.
What is the Boglehead 3-fund portfolio?
The Boglehead 3-fund portfolio is a simple, low-cost investment strategy popularized by followers of Jack Bogle (Vanguard founder). It consists of: (1) VTI or equivalent for US stocks, (2) VXUS or equivalent for international stocks, and (3) BND or equivalent for bonds. Many investors simplify further to a 2-fund portfolio of just VTI + VXUS.