This strategy beats a total stock market fund and gives you more diversification

Paul A. Merriman
This strategy beats a total stock market fund and gives you more diversification

Unfortunately, many advocates of total market funds don’t realize they aren’t fundamentally different from S&P 500 funds. As you probably know, the S&P 500 is made up of 500 of the largest publicly traded companies in the United States. Sure, there are 500 stocks in the index, and that should provide quite a bit of diversification.