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.

Stay curious and thanks for watching.

Chapters:

00:00 S&P 500 vs Total Stock Market Index

01:30 Under the Hood of the S&P 500

02:48 Looking Under the Hood of Total Stock Market Index

04:00 Do I Get Much Diversification with S&P & Total Index?

04:20 Passive or Active Investment Fund Teams?

05:31 Analyze Costs Expenses for Funds

06:33 Conclusion and Key Takeaways

𝐖𝐡𝐲 𝐰𝐞'𝐫𝐞 𝐡𝐞𝐫𝐞?

We’re here to make retirement planning feel less intimidating by helping people think through their strategies and plans through clear relatable financial topics!

💬 Questions or Want to Connect?

🌐 𝐖𝐞𝐛𝐬𝐢𝐭𝐞: www.custerfinancialadvisors.com

📧 𝐄𝐦𝐚𝐢𝐥: custerfinancialadvisors@lpl.com

Disclosures:

Harborfront Financial Group is a Registered Investment Advisor registered with the Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply a certain level of skill or training, and the content of this communication has not been approved or verified by the United States Securities and Exchange Commission or by any state securities authority.

The information contained in this material is intended to provide general information about Harborfront Financial Group and its services. It is not intended to offer investment advice. Investment advice will only be given after a client engages our services by executing the appropriate investment services agreement. Information regarding investment products and services are provided solely to read about our investment philosophy and our strategies. You should not rely on any information provided on our web site in making investment decisions.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Harborfront Financial Group, a Registered Investment Advisor. Harborfront Financial Group and Custer Financial Advisors are separate entities from LPL Financial.

This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing. All investing involves risk including loss of principal. No strategy assures success or protects against loss.