Vanguard S&P 500 ETF vs. Vanguard Total Stock Market ETF: Which Is More Likely to Survive a Stock Market Crash or Recession?

The Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF are two of the most popular ETFs on the market. Both provide exposure to the US stock market, but they have some key differences.

The Vanguard S&P 500 ETF tracks the S&P 500 index, which is made up of the 500 largest publicly traded companies in the US. The Vanguard Total Stock Market ETF, on the other hand, tracks the CRSP US Total Market Index, which includes nearly all publicly traded US companies.

When it comes to surviving a stock market crash or recession, the Vanguard Total Stock Market ETF may have an advantage. This is because it has a more diversified portfolio, with exposure to smaller companies and different sectors.

The Vanguard S&P 500 ETF, on the other hand, is more concentrated in the largest companies, which can be more volatile during times of market stress. However, it's also important to note that the S&P 500 index has historically been a strong performer over the long term.

Ultimately, the choice between the Vanguard S&P 500 ETF and the Vanguard Total Stock Market ETF will depend on an investor's individual goals and risk tolerance. Both ETFs can be a great addition to a diversified portfolio, but it's essential to understand their differences and how they may perform in different market conditions.