You’ve probably heard that the S&P 500 is the "market." It’s the standard. It’s what the news anchors shout about every afternoon at 4:00 PM. But if you actually want to own the entire U.S. economy—every single publicly traded company from the massive tech giants down to the tiny micro-caps in the Midwest—the S&P 500 isn't enough. It's too small. You're looking for the Wilshire 5000.
Back in 1974, the folks at Wilshire Associates decided we needed a better yardstick. They built an index that tracks basically everything. If it’s a U.S. company with readily available price data, it's probably in there. For a long time, buying a Wilshire 5000 index ETF was considered the "holy grail" for passive investors who wanted zero blind spots in their portfolio.
But here is the weird part. If you go to your brokerage account right now and type "Wilshire 5000 ETF" into the search bar, you might be surprised by how few direct results pop up.
The Disappearing Act of the Pure Wilshire 5000 Index ETF
It’s kinda strange, honestly. You’d think the "Total Market Index" would be the most popular product on Wall Street. Yet, the investment landscape has shifted. For years, the Guggenheim Wilshire 5000 Total Market ETF (which used the ticker WFVK) was the go-to option. Then, things changed. Funds closed. Licenses shifted.
The reality today is that "Wilshire 5000" has become more of a benchmark than a product name you see on every billboard. Most investors who want this exposure end up buying "Total Stock Market" funds that track nearly identical indexes, like the CRSP US Total Market Index or the Russell 3000.
Why does this matter? Because of the "tail."
The Wilshire 5000 includes thousands of tiny companies that the S&P 500 ignores. We are talking about the difference between owning 500 companies and owning roughly 3,500 to 4,000 companies. Interestingly, the Wilshire 5000 hasn't actually had 5,000 stocks in it for quite a while. The number fluctuates based on IPOs, mergers, and delistings. As of early 2026, the count is significantly lower than its namesake, but it still represents the most exhaustive slice of the American pie you can get.
👉 See also: Why 425 Market Street San Francisco California 94105 Stays Relevant in a Remote World
Does the Extra Diversification Actually Pay Off?
Let's get real for a second. If you look at a chart comparing a total market index to the S&P 500 over the last decade, they look like twin siblings. They move in lockstep.
This happens because these indexes are market-cap weighted. Apple, Microsoft, and Nvidia are so massive that they steer the ship. When you buy a Wilshire 5000 index ETF (or its closest cousins), those top 10 companies still make up a huge chunk of your money. The 3,000 tiny companies at the bottom of the list? They are like the loose change in your couch cushions. Even if one of them triples in price overnight, it barely moves the needle on your total portfolio.
So, why bother?
Small-cap tilt. That's why. Every once in a decade, small and mid-sized companies outperform the behemoths. If you only own the S&P 500, you miss the "reversion to the mean" when big tech gets bloated and the little guys start to run.
The Hidden Complexity of "Full Replication"
Running a fund that tracks 3,500+ stocks is a massive pain in the neck.
When a fund manager tries to build a Wilshire 5000 index ETF, they have to deal with liquidity issues. Some of these micro-cap stocks barely trade. If a fund tries to buy $10 million worth of a tiny company, they might accidentally drive the price up just by trying to buy it. This is called "market impact," and it eats into your returns.
✨ Don't miss: Is Today a Holiday for the Stock Market? What You Need to Know Before the Opening Bell
This is why many "Total Market" ETFs don't actually own every single stock in the index. They use something called "sampling." They buy all the big ones and then use statistical models to buy a representative sample of the small ones. It’s a shortcut, basically. It keeps costs low, which is usually better for you in the long run, even if it means you don't technically own "everything."
Real-World Alternatives You’ll Actually Find
Since finding a fund with the literal name "Wilshire 5000" in the title is getting harder, savvy investors look at the proxies. These are the heavy hitters that do the exact same job:
- Vanguard Total Stock Market ETF (VTI): This is the king. It tracks the CRSP US Total Market Index. It’s cheap. It’s huge. It’s basically the Wilshire 5000 in a different outfit.
- iShares Core S&P Total Stock Market ETF (ITOT): This tracks the S&P Total Market Index. Again, it’s designed to capture everything from the big dogs to the strays.
- Schwab US Broad Market ETF (SCHB): This tracks the Dow Jones U.S. Broad Stock Market Index.
All of these have expense ratios that are near zero. We’re talking 0.03% or less. If you’re paying more than that for a total market fund, you're getting ripped off. Period.
The "Tax Loss Harvesting" Secret
One reason people still talk about the Wilshire 5000 specifically is for tax purposes. If you have a massive capital gain in your Vanguard Total Stock Market fund and you want to sell it to realize a loss but stay invested in the market, you can’t just buy the same fund back immediately. That’s a "wash sale."
But you can sell VTI and buy a fund that tracks the Wilshire 5000. Because they track different (though similar) indexes, the IRS generally views them as "not substantially identical." It's a professional-grade loophole that high-net-worth investors use to lower their tax bills without ever leaving the market.
What Most People Get Wrong About Total Market Indexes
A common myth is that the Wilshire 5000 is "safer" because it has more stocks.
🔗 Read more: Olin Corporation Stock Price: What Most People Get Wrong
Not really.
In a market crash, everything correlates to 1.0. When the world feels like it's ending, people sell their Apple stock AND their tiny biotech stock. Diversification doesn't protect you from a systemic meltdown; it protects you from the death of a single company.
Another misconception is that the Wilshire 5000 includes international stocks. It doesn't. It is strictly "Made in the USA." If you want the world, you need an ACWI (All Country World Index) fund. Relying solely on a Wilshire 5000 index ETF means you are betting 100% on American exceptionalism. That’s been a great bet for 100 years, but it’s still a concentrated bet in the grand scheme of things.
The Verdict on the Wilshire 5000
If you can find a low-cost, liquid Wilshire 5000 index ETF, it is arguably the most "pure" way to own the U.S. economy. It captures the IPOs of tomorrow before they ever make it into the S&P 500. It's the ultimate "set it and forget it" tool.
However, don't get hung up on the branding. The financial industry has largely moved toward the Russell 3000 or the CRSP indexes because they are cheaper to license. The performance difference is usually measured in basis points—fractions of a percent.
Actionable Steps for Your Portfolio
- Check your overlap. If you own an S&P 500 fund and a "Total Market" fund, you are doubling down on the same top 10 companies. Pick one.
- Look at the expense ratio. If you’re paying more than 0.05% for a broad market index, swap to a cheaper provider like Vanguard, Schwab, or BlackRock.
- Mind the "Float." Ensure any index fund you buy is "float-adjusted," meaning it only counts shares actually available for the public to trade, not shares held by founders or governments.
- Stay the course. The beauty of the Wilshire 5000 is that it eliminates the need to pick winners. You simply own the economy. When the economy grows over 20 years, you grow with it.
Investing doesn't have to be a hunt for the "next big thing." Sometimes, the best move is just to buy everything and go get some coffee. The Wilshire 5000 is the ultimate "everything" button. Use it wisely.