Wilshire 5000 Equity Index
The Wilshire 5000 Total Market Index (TMWX), commonly known as the "Wilshire 5000," is a market-capitalization-weighted index that tracks the performance of all actively traded U.S. headquarter stocks with readily available price data. Despite its name suggesting 5,000 components, the index actually contained roughly 3,400 stocks as of late 2024, making it the broadest measure of the U.S. equity market. It was originally created by Wilshire Associates in 1974 and is now maintained by Wilshire Indexes, serving as the definitive benchmark for total U.S. stock market performance.
SHORT DEFINITION
The Wilshire 5000 Total Market Index (TMWX), commonly known as the "Wilshire 5000," is a market-capitalization-weighted index that tracks the performance of all actively traded U.S. headquarter stocks with readily available price data. Despite its name suggesting 5,000 components, the index actually contained roughly 3,400 stocks as of late 2024, making it the broadest measure of the U.S. equity market. It was originally created by Wilshire Associates in 1974 and is now maintained by Wilshire Indexes, serving as the definitive benchmark for total U.S. stock market performance.
WHAT IT IS
The Wilshire 5000 was launched in 1974 by Wilshire Associates with the ambitious goal of capturing virtually every publicly traded U.S. stock. At its inception, the index contained approximately 5,000 securities, hence the name. Today, the actual number of constituents fluctuates — hovering around 3,400 in recent years — due to mergers, delistings, bankruptcies, and changes in eligibility criteria. Despite the declining count, it remains the gold standard for measuring the total U.S. equity market.
The index includes all common stocks and REITs (Real Estate Investment Trusts) that are headquartered in the United States and trade on major exchanges, including the NYSE, NYSE American, NASDAQ, and NYSE ARCA. It excludes limited partnerships, OTC Bulletin Board stocks, pink sheet stocks, closed-end funds, ETFs, and royalty trusts. As of 2024, the Wilshire 5000's total market capitalization exceeded $50 trillion, dwarfing the S&P 500's roughly $45 trillion and reflecting the vast universe of mid-cap, small-cap, and micro-cap stocks that round out the broader market.
There are actually several versions of the Wilshire 5000. The "Total Market Index" (full capitalization) weights each company by its total float-adjusted market cap. There is also the "Total Market Index (Float-Weighted)" version, and a price-weighted variant. Most investors and financial professionals reference the full-capitalization version when discussing the index. The Wilshire 5000 also serves as the foundation for the Wilshire 4500, which is simply the Wilshire 5000 minus the S&P 500 components — effectively capturing the performance of mid-, small-, and micro-cap stocks.
HOW IT WORKS
The Wilshire 5000 is market-capitalization weighted, meaning each company's influence on the index is proportional to its market value. To calculate the weight of any individual stock, you divide that company's float-adjusted market capitalization by the total float-adjusted market capitalization of all constituents. For example, if Apple's float-adjusted market cap is $3 trillion
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Educational disclaimer: This MoneyBestPal article is for general financial education only. It is not investment, tax, legal, or accounting advice. Consider speaking with a qualified professional before making decisions based on your personal situation.
