Slicing Up All Cap US Equity ETFs

ETF Database

With over 1400 funds to choose from, many investors find themselves overwhelmed with the sheer number of options for entering the market. The most popular options for many investors are the oldest and most established funds that focus on tracking the U.S. large cap economy. Not only do these funds often have some of the highest volume of daily trading, but they also make for an easy transition into the ETF market for domestic equity investors [for ETF industry news, sign up for the free ETFdb Newsletter].  

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Financials look to be in focus again this week

The Popular Sectors

With US Equities making up nearly 500 funds in the ETF universe–and that number is consistently growing–investors are able to tap into any corner of the domestic market. This also includes the option to gain exposure to every sector and market cap, making All Cap Equities an interesting pure market play. But like many broad based ETFs, U.S. total market does not mean that the sectors are equally weighted. [Download Free Report: How To Buy The Right ETF Every Time].

The charts below highlight the concentration of fund coverage in domestic equities, using the holdings of the five most popular total market U.S. ETFs:

  • Total Stock Market ETF (VTI, A+)
  • iShares Russell 3000 Index Fund (IWV, A)
  • iShares MSCI USA Minimum Volatility Index Fund (USMV, A-)
  • Schwab US Broad Market ETF(SCHB, A)
  • Schwab US Dividend Equity ETF(SCHD, A-)

While there is a general tilt to technology, financials and energy, it is not so overwhelming that other sectors are drowned out. Investors should always look into the fund structure and sector concentrations of each ETF before investing, as these aspects could greatly effect future returns.

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Disclosure: No positions at time of writing.

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