Best Total Market Mutual Funds

Total Market mutual funds provide exposure to the entire U.S. equity market — large-cap, mid-cap, and small-cap companies — in a single fund. Instead of tracking just the S&P 500 (which covers roughly 500 large companies), total market funds track broader indexes like the CRSP US Total Market Index or the Wilshire 5000, holding thousands of stocks across the full market-cap spectrum.

This "own everything" approach makes total market funds the simplest possible U.S. equity holding. One fund, one purchase, and you own a slice of every publicly traded company in America — from Apple and Microsoft to mid-cap industrials to small-cap growth companies. The result is maximum diversification within U.S. equities at minimal cost.

Total market funds are the backbone of the "three-fund portfolio" strategy — a total U.S. stock fund, a total international fund, and a total bond fund. This approach, popularized by Vanguard founder Jack Bogle and the Bogleheads community, is widely considered the gold standard for simple, low-cost, long-term investing.

All four total market funds in our database are passively managed index funds tracking nearly identical benchmarks — so performance differences are minimal. As of June 2026:

FZROX (Fidelity ZERO Total Market Index): +20.04% (1yr) | 0.00% expense ratio | $38.6B AUM — The only mutual fund in America with a true zero expense ratio. Fidelity's loss-leader strategy: attract assets with a free fund, then cross-sell brokerage services. FZROX tracks the Fidelity U.S. Total Investable Market Index (a proprietary benchmark nearly identical to the CRSP index). The catch: only available at Fidelity, cannot be transferred in-kind to another brokerage.

VTSAX (Vanguard Total Stock Market Index Admiral): +20.03% (1yr) | 0.01% ER | $2.3 trillion AUM | 1.21% yield — The largest mutual fund in the world by assets. VTSAX tracks the CRSP US Total Market Index and holds over 3,600 stocks. At 0.01%, the expense ratio is essentially free — $1 per year on a $10,000 investment. The $3,000 minimum investment is the only barrier for new investors. See our alternatives to VTSAX guide for options with no minimum.

FSKAX (Fidelity Total Market Index): +20.01% (1yr) | 0.002% ER | $138.5B AUM | 1.14% yield — Fidelity's traditional total market fund (not the ZERO version). No minimum investment, 0.002% expense ratio, and available for transfer to other brokerages — advantages FZROX lacks. Our FZROX vs FSKAX comparison breaks down which is better for your situation.

SWTSX (Schwab Total Stock Market Index): +19.93% (1yr) | 0.009% ER | $43.5B AUM | 1.30% yield — Schwab's total market offering. No minimum investment, solid Schwab brokerage integration. Slightly higher expense ratio than FSKAX but still negligible.

Key takeaway: Performance across all four funds is within 0.11% — the difference between the best and worst 1-year return. At these cost levels, the choice comes down to which brokerage you use, not which fund is "better." All four deliver essentially identical market exposure.

The most common question for total market fund investors: should I hold a total market fund or an S&P 500 index fund?

What's different: An S&P 500 fund like FXAIX or VFIAX holds roughly 500 large-cap U.S. stocks. A total market fund like VTSAX or FSKAX holds those same 500 stocks plus ~3,000 additional mid-cap and small-cap companies. The S&P 500 stocks make up roughly 80–85% of the total market fund by weight — the remaining 15–20% is mid-cap and small-cap stocks.

Historical performance: Over the past 10, 20, and 30 years, the S&P 500 and the total U.S. stock market have delivered nearly identical returns — usually within 0.1–0.3% of each other annually. The correlation between the two is above 0.99. For most investors, the practical difference is negligible.

When total market wins: During periods when small-cap and mid-cap stocks outperform large-caps (like the early 2000s or late 2026), a total market fund captures that premium. Small-cap stocks returned +29.56% over the trailing 12 months (SWSSX) compared to roughly +18% for the S&P 500 — a significant gap.

When S&P 500 wins: During periods of mega-cap dominance (like 2015–2021), the S&P 500 slightly outperforms because it's more concentrated in the largest, best-performing companies. The "dead weight" of small and mid-cap laggards drags total market returns slightly lower.

The practical answer: If you already hold an S&P 500 fund, there's no urgency to switch. If you're starting fresh, a total market fund offers marginally better diversification at identical cost. Our FXAIX vs FSKAX comparison breaks down the S&P 500 vs. total market decision in detail.

Fidelity's FZROX (ZERO Total Market Index Fund) launched in 2018 and genuinely charges 0.00% in annual fees — no expense ratio at all. This raises an obvious question: why would anyone pay even 0.01% for VTSAX or 0.002% for FSKAX?

The case for FZROX: Free is free. On a $500,000 portfolio, the difference between 0.00% and 0.01% is $50/year — not life-changing, but real money over 30 years ($1,500+ with compounding). FZROX has no minimum investment, making it ideal for beginning investors at Fidelity.

The case against FZROX: FZROX tracks a proprietary Fidelity benchmark (not the CRSP or Wilshire indexes). This means the fund cannot be transferred in-kind to Vanguard, Schwab, or another brokerage — you'd have to sell shares, potentially triggering a taxable event. If you ever leave Fidelity, FZROX becomes a problem. FSKAX, by contrast, tracks a standard benchmark and can be moved.

The practical recommendation: If you're committed to Fidelity long-term, FZROX is the cheapest way to own the total U.S. market. If there's any chance you'll switch brokerages in the future, FSKAX at 0.002% offers identical exposure with full portability. See our VTSAX vs FZROX comparison and FZROX vs FSKAX comparison for the complete breakdown.

Total market funds are designed as core holdings — the foundation of a long-term portfolio, not a satellite position.

The three-fund portfolio: The most popular approach: pair a total U.S. stock fund (VTSAX, FSKAX, or FZROX) with a total international fund and a total bond fund. Adjust the ratio based on your age and risk tolerance. A 30-year-old might hold 60% U.S. stock / 30% international / 10% bonds. A 55-year-old might hold 40% U.S. stock / 20% international / 40% bonds.

In a Roth IRA: Total market funds are ideal for Roth IRAs — the broad diversification and low cost maximize the value of tax-free growth. FZROX or FSKAX (no minimum) make excellent first Roth IRA holdings.

In a taxable account: Total market index funds are among the most tax-efficient equity funds available. Low turnover means minimal capital gains distributions. VTSAX has historically distributed negligible capital gains relative to active funds.

For dollar-cost averaging: The no-minimum funds (FSKAX, FZROX, SWTSX) are perfect for automatic monthly investing. Set up a $100, $500, or $1,000 monthly auto-invest and never think about market timing.

Adding tilts: Some investors start with a total market core and add satellite positions for specific exposures — a small-cap value tilt, an international developed markets overweight, or a growth allocation. The total market fund provides the diversified base; the satellites provide targeted exposure.

Our in-depth comparison articles break down the key differences between total market funds and their closest alternatives:

• VTSAX vs FZROX — Vanguard's $2.3 trillion giant vs. Fidelity's zero-fee challenger. The definitive comparison of the two most popular total market funds.
• FZROX vs FSKAX — Both Fidelity funds, but very different: FZROX is zero-fee but non-transferable; FSKAX costs 0.002% but is fully portable. Which matters more?
• FXAIX vs FSKAX — S&P 500 vs. total market within the Fidelity family. The classic scope question: 500 stocks or 3,600+?
• VTSAX vs SWTSX — Vanguard vs. Schwab total market. A straight comparison for investors choosing between the two brokerages.

For investors considering alternatives to specific funds, see our alternatives to VTSAX and alternatives to VFIAX guides — both cover total market funds as primary alternatives to S&P 500 holdings.

Choosing between total market funds? Our guide to comparing mutual funds walks through the analytical framework step by step.