If you’re a newbie investor, you may find total market exchange traded funds (ETFs) an appealing foundation for your portfolio. Let’s explore this asset class.
Total market is the total combination of publicly traded stocks as weighted by capitalization. Total U.S. bond market and foreign equities may also be included in their own total market sets. ETFs use a sampling methodology to follow every security in a total market system.
Why would you want such a fund?
When confronted with total market equities, most wonder if it is possible to beat by investing in sub-indexes, comments Will McClatchy for ETF Zone. Picking out the top-performing sectors, however, is usually tougher to execute than you might think. And if you find that to be so, then total market ETFs could be for you.