By Bram Berkowitz
Publication Date: 2026-04-05 16:32:00
The Vanguard Total Stock Market ETF (VTI +0.16%) provides investors with access to a much larger pool of U.S. stocks than the broader S&P 500 index. While the S&P 500 tracks roughly 500 large-cap U.S. stocks across sectors, the VTI exchange-traded fund (ETF) holds a basket of 3,500 stocks, representing a majority of U.S. publicly traded companies.
VTI, which is passively managed, consists of large-, mid-, and small-cap stocks across sectors and categories, including growth and value.
Image source: Getty Images.
Like the S&P 500, VTI holds some of the world’s largest companies by market cap, including Nvidia, Apple, and Microsoft. VTI is also a market-weighted index, meaning its largest sector is technology, which accounts for roughly 36% of the ETF. It also means large stocks in the S&P 500 make up a disproportionate amount of the ETF.
For instance, Nvidia comprises over 6% of the ETF, Apple nearly 5.9%, and Microsoft roughly 4.4%. Is this the smartest way to buy the entire U.S. stock market right now?
Heavy concentration removes the diversity component
The market-weighted component of VTI means the ETF is still overweight tech stocks right now.
To be fair, large U.S. tech and artificial intelligence stocks look pretty attractive after struggles to find their footing this year. While the group has sold off, Wall Street analysts have largely raised their earnings estimates, compressing their valuation multiples. For instance, Nvidia now trades at a forward earnings…