Precourse
Module 1 – How to Track Price Action on Ichimoku Charts
Module 2 – Finding Support and Resistance
Module 3 – Reading the Charts
Postcourse

Using Total Market ETFs

To see a chart of the total market, you can use an index or an ETF that tracks the Index. I prefer to use the ETF because you can trade ETFs but not indexes. You can also buy index mutual funds that track indexes.

To chart the entire market we can use a total market ETF like VTI.

VTI

Vanguard Total Stock Market Index Fund ETF Shares

At the time of this writing, VTI holds 3529 stocks. If you were to buy this ETF, it would be like you are buying into almost the entire stock market. There is an investment strategy that only uses three ETFs, with this being the main component.

We discuss Ichimoku and the 3-Fund Portfolio in Course 05 – Unique Ichi Uses – How to Use Ichimoku to Find Market Health Plus Other Unique Uses – Using Doppler Radar.

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Side Quest: Vanguard VTI
Product page for total market ETF.
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“The investment seeks to track the performance of a benchmark index that measures the investment return of the overall stock market. The fund employs an indexing investment approach designed to track the performance of the CRSP US Total Market Index, which represents approximately 100% of the investable U.S. stock market and includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq. It invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full index in terms of key characteristics.”

Competing Total US Market ETFs

ITOT – by iShares – 3544 holdings
SCHB – by Schwab – 2411 holdings

Total World

If you want to track development and emerging markets as well as the US market you can use a “Total World” ETF.

VT
Vanguard Total World Stock Index Fund ETF Shares

VT has 8666 holdings at the time of this writing.

“The investment seeks to track the performance of a benchmark index that measures the investment return of stocks of companies located in developed and emerging markets around the world. The fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap Index.”

Competing Total World ETFs

ACWI -by iShares – 2259 holdings
SPGM – by State Street Global Advisors – 1524 holdings

If you are ever considering trading an ETF and are considering competing ETFs, it’s always smart to check the holdings, expense ratios, and dividends.