The Dow Jones U.S. Completion Total Stock Market Index is a crucial piece of the U.S. equity market puzzle. If you’re looking to build a diversified investment portfolio beyond the giants in the S&P 500, this index deserves your attention.
Let’s dive into what makes this index important, how it works, and how you can invest in it smartly.
What is the Dow Jones U.S. Completion Total Stock Market Index?
The Dow Jones U.S. Completion Total Stock Market Index includes all U.S. stocks not part of the S&P 500. Think of it as the “other half” of the market.
This index provides exposure to:
- Mid-cap and small-cap U.S. stocks
- Emerging companies with growth potential
- Industries not heavily represented in the S&P 500
It’s managed by S&P Dow Jones Indices, a leading provider of financial market benchmarks.
Why is it Called “Completion” Index?
It’s called the “completion” index because it completes the U.S. total stock market picture when combined with the S&P 500.
Together:
- S&P 500 = Large-cap stocks (approx. 80% of U.S. market cap)
- DJ U.S. Completion Index = Remaining 20% (mid- and small-caps)
So, investing in both gives you full market exposure.
Key Features of the Index
1. Broad Market Coverage
Covers nearly 3,500 stocks outside the S&P 500.
2. Market-Cap Weighted
Larger companies have greater influence, but small firms are still included.
3. Sector Diversification
Covers tech, healthcare, industrials, energy, and more—offering balanced exposure.
4. Dynamic Composition
Updated quarterly to reflect market changes.
Components of the Dow Jones U.S. Completion Index
This index includes companies like:
- Uber Technologies (UBER)
- Square (SQ)
- Zoom Video (ZM)
- CrowdStrike (CRWD)
- Roku (ROKU)
These are mid- and small-cap firms that can offer rapid growth.
🔍 Note: Companies in the index can change due to market performance and restructuring.
How to Invest in the Dow Jones U.S. Completion Index
You can’t buy the index directly, but you can invest through mutual funds and ETFs.
Popular ETFs Tracking This Index:
- Vanguard Extended Market ETF (VXF)
- iShares Russell Mid-Cap ETF (IWR) (not exact but similar exposure)
Steps to Invest:
- Open a brokerage account (e.g., Fidelity, Vanguard, Charles Schwab).
- Search for ETF: e.g., VXF.
- Analyze expense ratio, performance, and holdings.
- Invest directly or via SIP (Systematic Investment Plan).
Performance History
The index has historically outperformed the S&P 500 during bull markets, but may lag in recessions.
| Year | DJ Completion Index Return | S&P 500 Return |
|---|---|---|
| 2021 | +17.2% | +26.9% |
| 2022 | -26.3% | -18.1% |
| 2023 | +10.7% | +14.6% |
📈 Tip: Best used in combination with S&P 500 for long-term growth.
Benefits of Investing in This Index
- ✅ Exposure to emerging U.S. companies
- ✅ Ideal for portfolio diversification
- ✅ Complements S&P 500 holdings
- ✅ Access to growth sectors like tech and biotech
Risks to Consider
- ⚠️ Higher volatility compared to large-cap stocks
- ⚠️ Less liquidity in small-cap companies
- ⚠️ Sensitive to economic downturns
Always assess your risk tolerance before investing.
Who Should Invest?
This index is suitable for:
- Long-term investors aiming for full U.S. equity exposure
- Investors with moderate to high risk appetite
- People looking to diversify beyond the S&P 500
Tips to Maximize Returns
- Combine with an S&P 500 ETF for full market exposure.
- Use dollar-cost averaging to manage risk.
- Rebalance your portfolio yearly.
- Stay invested during market cycles.
Alternatives to Consider
If you’re exploring beyond this index, consider:
- Total Stock Market ETFs (e.g., VTI, SCHB)
- Mid-Cap ETFs (e.g., IJH, VO)
- Small-Cap ETFs (e.g., IWM, VB)
These provide similar or overlapping exposure.
FAQs About Dow Jones U.S. Completion Total Stock Market Index
1. What is the purpose of the Dow Jones U.S. Completion Index?
It completes the picture of the U.S. equity market by covering stocks outside the S&P 500.
2. How is this index different from the S&P 500?
While the S&P 500 includes large-cap companies, this index focuses on mid- and small-cap stocks.
3. Is it better to invest in this index or a total market ETF?
Both are good. A total market ETF includes both large-cap and non-large-cap stocks. This index is best used to complement the S&P 500.
4. Which ETFs follow this index?
The most popular is the Vanguard Extended Market ETF (VXF).
5. Can this index provide better returns than the S&P 500?
Yes, especially in bull markets, due to the high growth potential of smaller companies.
6. Is this index suitable for beginners?
Yes, if you are using it through a diversified ETF and have a long-term investment horizon.
Conclusion: A Powerful Tool for Diversified Growth
The Dow Jones U.S. Completion Total Stock Market Index offers a unique opportunity to invest in America’s rising stars. When combined with large-cap exposure, it creates a balanced and robust portfolio.
Whether you’re an experienced investor or just starting out, adding this index through a reliable ETF can enhance your growth potential while managing risks.
✅ Take the next step—explore ETFs like VXF today and complete your investment strategy!
