Index Fund picking - Total Market or 500?

[tominboise]

Trying to reorganize and simplify our portfolio. We have money in both Fido Total Market and 500 index funds, among others. They seem to be quite similar. I think I should consolidate these two, but into which?

 

[OldShooter]

S&P 500 funds hold about 15% of US listed stocks, but that small slice comprises about 80% of the US market cap. So those who advocate them argue correctly that they are "almost" total market funds.

I see no reason to go with "almost" when I can buy the whole market so easily.

There are also concerns that the 500 market cap is dominated by just a few stocks, which is true. Also that it is "overvalued" (whatever that means) because so many people are buying S&P 500 funds. Since we have never owned such a fund these are not things I've worried much about.

 

[pb4uski]

While my good friend OldShooter makes some good points and I also prefer Total Stock to 500 because it covers more of domestic US stocks, the reality is that the returns are similar enough that in the long-run it doesn't matter very much. The accumulated value from Jan 1993 to March 2020 was only 2% different... with 500 outperforming Total Stock by 0.08% annually.