Is the S&P 500 and the Total Stock Market Index Similar?

Written By Michael Custer

In this episode of Common Curiosities Retirement, we break down one of the most common debates we see on social media: What is the actual difference between the S&P 500 index and the Total Stock Market index?

Influencers love shouting what one you should have, sho the past returns alone but what would a trained professional want to know about them? Michael a CFP®, EA and a professional investment advisor want to know when looking at both of these?

This is not a recommendation. It is not tied to any investment company. It is simply a quic look under the hood so you can understand why these two popular funds overlap more than people realize.

Here is what we unpack

💭 What you really own in the S&P 500

💭 What “total stock market” actually includes

💭 Why both funds are still dominated by large US companies

💭 What market cap weighting means

💭 Does one have more diversification?

💭 What people misunderstand about these for diversification

💭 Why expense ratios matter for these index funds

💭 Where active managers try to add value around index changes

Whether you love index funds, are building a long term plan, or just want clarity beyond social media hot takes, this episode breaks it down in simple, digestible language.

Michael Custer

Michael graduated from Hope College where he played Quarterback for the football team. Now, he focuses on tax strategies, helping W-2 employees and small business owners with implementing tax strategies, learning their choices with old work retirement plans, and Roth IRAs. He has a passion for building a relationship with his clients. Understanding why money matters to you is important to him. He firmly believes that finances can be a powerful tool for your life goals.

Michael is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and also holds his Series 7, Series 66, Series 24. and SIE registrations with LPL Financial as well as his Life, Health, Property and Casualty insurance licenses.

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