• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Optimized Portfolio

Investing and Personal Finance

  • Start Here
  • Investing 101
    • Beginners Start Here – 10 Steps To Start Building Wealth
    • What Is the Stock Market? How It Works & How to Invest in It
    • How To Invest in an Index Fund – The Best Index Funds
    • Portfolio Asset Allocation by Age
    • How To Invest Your Emergency Fund
    • Portfolio Diversification – How To Diversify Your Portfolio
    • Dollar Cost Averaging vs. Lump Sum Investing (DCA vs. LSI)
    • How To Invest Your HSA (Health Savings Account)
    • Factor Investing and Factor ETFs – The Ultimate Guide
    • more…
  • Lazy Portfolios
    • All Weather Portfolio
    • Bogleheads 3 Fund Portfolio
    • HEDGEFUNDIE’s Excellent Adventure
    • Warren Buffett Portfolio
    • Golden Butterfly Portfolio
    • Paul Merriman Ultimate Buy and Hold Portfolio
    • Ben Felix Model Portfolio
    • Permanent Portfolio
    • David Swensen Portfolio
    • 60/40 Portfolio
    • more…
  • Funds
    • VOO vs. VTI – Vanguard S&P 500 or Total Stock Market ETF?
    • The 7 Best International ETFs
    • The 8 Best Small Cap ETFs (4 From Vanguard)
    • The 5 Best REIT ETFs
    • The 5 Best EV ETFs – Electric Vehicles ETFs
    • VIG vs. VYM – Comparing Vanguard’s 2 Popular Dividend ETF’s
    • The Best Vanguard Dividend Funds – 4 Popular ETFs
    • The 5 Best Tech ETFs
    • The 7 Best Small Cap Value ETFs
    • The 6 Best ETFs for Taxable Accounts
    • The 5 Best Emerging Markets ETFs (1 From Vanguard) for 2023
    • more…
  • Leverage
    • What Is a Leveraged ETF and How Do They Work?
    • How To Beat the Market Using Leverage and Index Investing
    • The 9 Best Leveraged ETFs
    • Hedgefundie’s Excellent Adventure
    • Leveraged All Weather Portfolio
    • Leveraged Permanent Portfolio
    • Leveraged Golden Butterfly Portfolio
    • NTSX – Review and Summary
    • TQQQ – Is It A Good Investment?
    • PSLDX – A Review
    • SWAN – A Review
    • RPAR Risk Parity ETF Review
    • more…
  • Dividends
    • The Best M1 Finance Dividend Pie
    • The 11 Best Dividend ETFs
    • The Best Vanguard Dividend Funds – 4 Popular ETFs
    • VIG vs. VYM – Comparing Vanguard’s 2 Popular Dividend ETF’s
    • 8 Reasons Why I’m Not a Dividend Income Investor
    • QYLD – A Harsh Review
    • more…
  • Brokers
    • The 5 Best Stock Brokers
    • The 4 Best Investing Apps
    • M1 Finance Review
    • Brokers with the Lowest Margin Rates
    • M1 Finance vs. Fidelity
    • M1 Finance vs. Vanguard
    • Webull vs. Robinhood
    • Stash vs. Robinhood
    • M1 Borrow Review (How M1’s Margin Loan Works)
    • more…
  • Retirement
    • The 10 Best ETFs for Retirement Portfolios in 2023
    • The 4% Rule for Retirement Withdrawal Rate – A Revisitation
    • Sequence of Return Risk in Retirement Explained
    • Traditional IRA Explained
    • Roth IRA Explained
    • 401k vs. Roth IRA
    • Roth IRA vs. Traditional IRA
    • Backdoor Roth IRA Explained
    • more…
  • My Toolbox

The 9 Best Large Cap ETFs (5 From Vanguard)

Last Updated: March 22, 2022 No Comments – 3 min. read

Large-cap stocks comprise over 80% of the total stock market. Below we'll review the 9 best large cap ETFs.

Disclosure:  Some of the links on this page are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality, ad-free content on this site and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful, not because of the commission I get if you decide to purchase through my links. Read more here.

Contents

  • Introduction – Why Large Cap Stocks?
  • The 9 Best Large Cap ETFs
    • SPY – SPDR S&P 500 ETF
    • MGC – Vanguard Mega Cap ETF
    • OEF – iShares S&P 100 ETF
    • VONE – Vanguard Russell 1000 ETF
    • IOO – iShares Global 100 ETF
    • VEU – Vanguard FTSE All-World ex-US ETF
    • VWO – Vanguard FTSE Emerging Markets ETF
    • VEA – Vanguard FTSE Developed Markets ETF
    • IEFA – iShares Core MSCI EAFE ETF
  • Where to Buy These Large Cap ETFs

Introduction – Why Large Cap Stocks?

Large-cap stocks in aggregate are less volatile and thus more “stable” than mid- and small-caps. Large-cap stocks as a whole make up over 80% of the total stock market by weight. They are also more popular and thus more liquid than their mid- and small-cap counterparts, as many investors prefer to simply buy an index of large-caps like the S&P 500 or the Russell 1000. Consequently, there are more ETFs available for large-caps than for any other cap size.

Household names like Amazon, Google, Johnson & Johnson, etc. are all large-cap stocks. The largest of the large-caps, called mega-caps, are colloquially known as “blue chips,” considered dependable long-term investments. Retirees and investors with a lower risk tolerance will likely prefer large-cap stocks to mid- and small-caps, as they have a lower risk profile. Warren Buffett himself has instructed that his wife's inheritance be invested mostly in an S&P 500 index fund, all large-caps.

Let's explore the best large cap ETFs.

The 9 Best Large Cap ETFs

Below are the 9 best large cap ETFs to capture the bulk of the market.

SPY – SPDR S&P 500 ETF

The SPDR S&P 500 ETF (SPY) is the most popular large-cap ETF, and is actually the most popular ETF overall, with over $300 billion in assets. It is also one of the oldest large cap ETFs, founded in 1993. This ETF seeks to track the famous S&P 500 Index, comprised of the 500 largest companies in the United States. It is considered to be a barometer for “the market” in the U.S. The fund has an expense ratio of 0.09%.

MGC – Vanguard Mega Cap ETF

The Vanguard Mega Cap ETF (MGC) holds about 250 of the largest companies in the United States. The fund seeks to track the CRSP US Mega Cap Index. These famous stocks – Procter & Gambler, Disney, Visa, Apple, Amazon, etc. – are considered “blue chips” – dependable, stable, safe companies that are likely to easily survive black swan stock crashes. This fund has an expense ratio of 0.07%.

OEF – iShares S&P 100 ETF

The S&P 100 Index is an even more concentrated index of mega-caps, tracking the 100 largest companies in the United States. Investors can access this index with the iShares S&P 100 ETF (OEF). The fund has an expense ratio of 0.20%.

VONE – Vanguard Russell 1000 ETF

Investors seeking broader, more diversified large-cap exposure may desire to invest in the Russell 1000 Index via the Vanguard Russell 1000 ETF (VONE). This index tracks the 1,000 largest companies in the United States, which make up over 90% of the total U.S. stock market. The fund has an expense ratio of 0.08%.

IOO – iShares Global 100 ETF

Prefer to go global with mega-caps? The iShares Global 100 ETF seeks to track the S&P Global 100 Index, an index 100 of the largest stocks around the world. Note that the United States still comprises about 70% of the fund's exposure, with the other 30% going to international developed markets. This ETF has an expense ratio of 0.40%.

VEU – Vanguard FTSE All-World ex-US ETF

For international (ex-US) diversification, the Vanguard FTSE All-World ex-US ETF (VEU) provides exposure to both foreign developed markets and emerging markets. The fund seeks to track the FTSE All-World ex US Index. It has nearly 3,500 holdings, $40 billion in assets, and an expense ratio of 0.08%.

VWO – Vanguard FTSE Emerging Markets ETF

Prefer to target large-caps in emerging markets? The Vanguard FTSE Emerging Markets ETF (VWO) has over $85 billion in assets under management and over 5,000 holdings. The fund seeks to track the FTSE Emerging Markets All Cap China A Inclusion Index and has an expense ratio of 0.10%.

VEA – Vanguard FTSE Developed Markets ETF

Those seeking to specifically target international large-caps in developed markets can do so with the Vanguard FTSE Developed Markets ETF (VEA). The fund has over $115 billion in assets, nearly 4,000 holdings, and an expense ratio of 0.05%.

IEFA – iShares Core MSCI EAFE ETF

Investors wanting to invest in large-caps in the EAFE can use the iShares Core MSCI EAFE ETF (IEFA). The fund seeks to track the MSCI EAFE IMI Index and excludes the United States and Canada. It has over $70 billion in assets, nearly 2,500 holdings, and an expense ratio of 0.07%.

Where to Buy These Large Cap ETFs

All these large cap ETFs are available at M1 Finance. M1 has zero trade commissions and zero account fees, and offers fractional shares, dynamic rebalancing, and a sleek, user-friendly interface and mobile app. I wrote a comprehensive review of M1 Finance here.


Disclosures:  None.

Interested in more Lazy Portfolios? See the full list here.

Disclaimer:  While I love diving into investing-related data and playing around with backtests, this is not financial advice, investing advice, or tax advice. The information on this website is for informational, educational, and entertainment purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here.

m1

Don't want to do all this investing stuff yourself or feel overwhelmed? Check out my flat-fee-only fiduciary friends over at Advisor.com.

77 percent of millenials report their finances are a source of anxiety

Related Posts

  • AOK ETF Review – iShares Core Conservative Allocation ETF
  • The 9,116 Best Stocks To Buy Right Now in 2022
  • Should You Avoid State-Owned Enterprises in Your Portfolio?
  • M1 Finance vs. Stash Brokerage Comparison [2023 Review]
  • VOO vs. VOOV vs. VOOG – Vanguard S&P 500, Value, or Growth?

About John Williamson, APMA®

Analytical data nerd, investing enthusiast, fintech consultant, Boglehead, and Oxford comma advocate. I'm not a big fan of social media, but you can find me on LinkedIn and Reddit.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Facebook
  • Instagram
  • Reddit
  • Twitter
  • YouTube
  • Patreon

Join 5,372 other investors

Take control of your financial future by subscribing to receive exclusive emails with expert tips, news, and notifications of new posts and important updates.

Don't worry, I hate spam too. No ads.

John Williamson, APMA®

Analytical data nerd, investing enthusiast, fintech consultant, Boglehead, and Oxford comma advocate. I'm not a big fan of social media, but you can find me on LinkedIn and Reddit. Read More…

Most Popular

Ray Dalio All Weather Portfolio Review, ETFs, & Leverage (2023)

HEDGEFUNDIE’s Excellent Adventure (UPRO/TMF) – A Summary

Golden Butterfly Portfolio Review and M1 Finance ETF Pie

David Swensen Portfolio (Yale Model) Review and ETFs To Use

53 Lazy Portfolios and Their ETF Pies for M1 Finance (2023)

VIG vs. VYM – Vanguard’s 2 Popular Dividend ETFs (Review)

Warren Buffett ETF Portfolio (90/10) Review and ETFs (2023)

Bogleheads 3 Fund Portfolio Review and Vanguard ETFs (2023)

Paul Merriman Ultimate Buy and Hold Portfolio Review, M1 Pie (2023)

The Best M1 Finance Dividend Pie for FIRE & Income Investors

m1 sidebar

rocket money

m1 sidebar

visor sidebar

retirable

Portfolio Asset Allocation by Age – Beginners To Retirees

The 7 Best Small Cap ETFs (3 From Vanguard) for 2023

9 Best International ETFs To Buy (6 From Vanguard) in 2023

The 3 Best Inverse ETFs to Short the S&P 500 Index in 2023

Ben Felix Model Portfolio (Rational Reminder, PWL) ETFs & Review

Factor Investing and Factor ETFs – The Ultimate Guide

NTSX ETF Review – WisdomTree U.S. Efficient Core ETF (90/60)

The Ginger Ale Portfolio (My Own Portfolio) and M1 ETF Pie

TQQQ – Is It A Good Investment for a Long Term Hold Strategy?

QYLD – Avoid This ETF as a Long-Term Investment (A Review)

The 5 Best T Bill ETFs (Treasury Bills) To Park Cash in 2023

JEPI ETF Review – JPMorgan Equity Premium Income ETF

SPAXX vs. FZFXX, FDIC, FCASH, FDRXX – Fidelity Core Position

Recent Posts

“Should I Own International Stocks?” Yes. Here’s Why.

Return Stacking Explained – Greater Returns With Lower Risk?

RSSB ETF Review – Return Stacked Global Stocks & Bonds ETF

Fees, Trees, & Forests – Stop Obsessing Over Expense Ratios

Optimized Portfolio “Best in Class” ETFs List for 2023

7 Best Covered Call ETFs for Income Investors in 2023

Roth IRA vs. Traditional IRA – Which Is Better for You? (2023)

How To Build a 3 Fund Portfolio at Fidelity in 2023

Fidelity ZERO Funds Review – What’s the Catch?

Jack Bogle Was Wrong About These 3 Things

I Bonds Explained (US Savings Bonds) – Ultimate Guide (2023)

Sharpe Ratio vs. Sortino vs. Calmar – Risk Adjusted Return

Portfolio Risk Explained – How To Think About Risk and Volatility

The 10 Best ETFs for Retirement Portfolios in 2023

VOO vs. VOOV vs. VOOG – Vanguard S&P 500, Value, or Growth?

View All...

Footer

  • Facebook
  • Instagram
  • Reddit
  • Twitter
  • YouTube
  • Patreon

Amazon Affiliate Disclosure

OptimizedPortfolio.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.

Email Newsletter

Sign up to receive email updates when a new post is published.

Don't worry, I hate spam too. No ads.

About - My Toolbox - Privacy - Terms - Contact


Copyright © 2023 OptimizedPortfolio.com

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Ok, Got ItReject Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT