Dow Jones U.S. Completion Total Stock Market Index [CapiPedia]

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======Dow Jones U.S. Completion Total Stock Market Index======
The Dow Jones U.S. Completion Total Stock Market Index is a broad stock market index designed to measure the performance of all U.S. stocks //except// for those included in the famous [[S&P 500]]. Think of it this way: if you take the entire U.S. stock market, as represented by the [[Dow Jones U.S. Total Stock Market Index]], and subtract the 500 giant companies of the S&P 500, what you have left is this "Completion" index. It’s the rest of the team after the superstars have been picked. This leaves you with a massive basket of over 3,000 stocks, primarily consisting of [[mid-cap]] and [[small-cap]] companies. It offers investors a single, convenient tool to track the performance of the smaller, but still vital, publicly traded companies that form the backbone of the U.S. economy. It's a fantastic way to look beyond household names and into the broader market where future giants might be growing.
===== What Exactly Is It Completing? =====
The name "Completion" is quite literal. The index was created to "complete" an investor's exposure to the U.S. market if they already own an S&P 500 fund. By combining an S&P 500 [[index fund]] with a fund that tracks the Completion Index, an investor can effectively own a slice of the entire U.S. stock market, from the biggest behemoths to the smallest upstarts.
Like most major indices, it is [[market capitalization]]-weighted. This means that larger companies within the index have a greater impact on its performance than the smaller ones. So, while it contains thousands of companies, the largest mid-cap stocks will have more sway than the tiny small-cap stocks.
==== A Common Point of Confusion ====
Don't mix this index up with the [[Dow Jones Industrial Average (DJIA)]]. The DJIA, often just called "The Dow," tracks only 30 massive U.S. companies and is a much narrower, less representative snapshot of the market. The Completion Index is far broader and more focused on the mid-sized and smaller players.
===== Why Should a Value Investor Care? =====
For followers of [[value investing]], this index is more than just a [[diversification]] tool; it's a map to a fantastic hunting ground for potential bargains. While a passive index itself, the universe of stocks it represents is incredibly appealing.
==== A Broader, Less-Scrutinized Field ====
The giant companies in the S&P 500 are followed by armies of Wall Street analysts. Every piece of news is dissected in minutes, making it difficult to find undiscovered gems. The mid-cap and small-cap companies in the Completion Index, however, receive far less attention. This lack of constant scrutiny can lead to market inefficiencies and mispricing—the very conditions where a sharp-eyed value investor, in the spirit of [[Benjamin Graham]], can find wonderful businesses trading for less than their intrinsic worth.
==== Growth Potential and Diversification ====
Smaller companies inherently have more room to grow than corporate giants. While this comes with higher risk, it also offers greater potential for appreciation. Furthermore, owning the Completion Index helps you diversify away from the heavy concentration in a few [[large-cap]] technology stocks that currently dominate the S&P 500. A portfolio holding both can provide a smoother ride, balancing the stability of the giants with the growth potential of the up-and-comers.
===== How to Invest in It =====
You can't buy an index directly, but you can easily invest in it through low-cost funds designed to mirror its performance. The most popular ways are:
  * **Exchange-Traded Funds (ETFs):** These are funds that trade on a stock exchange just like a regular stock. They are a highly popular and tax-efficient way to invest. The most well-known [[Exchange-Traded Fund (ETF)]] tracking this index is the //Vanguard Extended Market ETF (VXF)//.
  * **Mutual Index Funds:** These are traditional mutual funds that also track the index. You buy shares directly from the fund company.
By purchasing shares in one of these funds, you gain ownership in thousands of U.S. companies with a single transaction, making it a powerful and simple tool for building a diversified portfolio through [[passive investing]].
===== The Bottom Line =====
The Dow Jones U.S. Completion Total Stock Market Index is your ticket to the rest of the U.S. stock market. It’s a powerful tool for achieving true market diversification, a fertile ground for discovering growth and value, and a perfect complement to an S&P 500 holding. For any investor looking to build a robust, well-rounded portfolio that captures the full dynamism of the American economy, this index is an essential concept to understand.