How the Vanguard Morningstar Total Stock Market ETF Aims to Outperform the S&P 500

The stock market is a global network of stock exchanges, indexes, and publicly traded companies where investors buy and sell shares. As of September 2026, the total market cap of the world's stock markets reached approximately $164.5 trillion, with around 59,500 listed companies. This market plays a crucial role in the economy by channeling capital to productive companies and innovative industries, offering investors a way to grow their wealth over the long term.

The stock market operates through exchanges like the New York Stock Exchange (NYSE) and the tech-focused Nasdaq. Investors often track performance through major indexes such as the Dow Jones Industrial Average, the S&P 500, and the Nasdaq-100. The S&P 500, which includes the top 500 largest U.S. companies, is frequently used as a benchmark for the overall market.

While many investors aim to beat the market by picking individual stocks, this strategy is notoriously difficult. Over the past 98 years, the S&P 500 has delivered average annual returns of 10%. For those seeking a more diversified approach, the Vanguard Morningstar Total Stock Market ETF (VTI) is a compelling option. VTI holds over 3,500 U.S. stocks of all sizes and has provided annualized returns of nearly 15% over the last 10 years.

VTI offers exposure to small-cap, mid-cap, growth, and value stocks, making it a strong contender to outperform the S&P 500 over the long term. However, before investing, consider that other high-performing stocks identified by The Motley Fool Stock Advisor may offer even greater returns. For instance, Netflix and Nvidia, recommended in the past, have yielded substantial gains for investors.