[Danielle]

I’m 30 years old and considering investing in either a total stock market index fund or the S&P 500. I’m looking for advice on which option might be better suited for someone my age in terms of long-term growth potential and diversification. Can anyone share their thoughts or experiences with investing in either of these options?

I’m particularly interested in understanding the pros and cons of each and how they might align with my investment goals.

Any insights or recommendations would be greatly appreciated.

Thanks!

[Colin]

Yes.

[David]

i personally like the S&P simply because its essentially ”self-cleansing”. The index gets rebalanced and reevaluated to remove underperforming companies which’s keeps the returns so high.

There’s little difference though between that and total market so you cant go wrong w either.

Have you seen: Should I sell everything and reinvest in SP500?

[Jared]

Yo yo yo. It greatly depends on who you’re setting the account with dude.

[Angelo]

They are essentially the same thing.

[Jimansy]

Same difference tbh

[Jimansy]

Just go all in on VOO and by time your 50 you will be a multimillionaire.

[JT Doc]

They’re virtually the same. I’m 32 and the majority of my money is in a total stock market index.

[David]

They’re practically the same.

I do total market because it is more diversified. But total market is about 80% s and p. Their returns end up being similar, although I’m pretty sure s and p has returned a little more in recent years. But it’s not a big difference.

Consider browsing: How are folks approaching this stock market spike?

[Vee]

VTSAX- “don’t look for the needle. Buy the entire haystack”

[Cap]

I prefer the S&P and if you specifically want small/midcap exposure you can choose funds for that purpose.

If you only want one fund, I prefer VOO but VTI won’t hurt you.

[Wlamir]

You likely have a 30 year investing horizon. I would use either one.

[Nicholas]

It does not really matter. The S & P 500 has historically performed slightly better but that may not be true in the future. These two are so close that having either one would work out just fine long-term.

I have both in different accounts as some of my retirement plans only offer one and not both.

Give these a glance: I have about 333k to put in the total stock market

[Lizzie]

Look at historical returns. Although it is not a prediction of the future it can tell you long term who should perform better.

Also, you can always change your strategy. You can sell & buy later something else.

[Ruben]

The only advantage I see to SP500 if you need a low turnover ratio. I use it to save for real estate investments because less short term capital gains.

Total market will have small caps that will sell more often and triggering taxes.

[Author]

Posts