<p>The Wilshire 5000 Total Market Index (TMWX) is a market capitalization-weighted index that tracks the performance of all publicly traded companies in the United States.</p>

<h2>How It Works</h2>
<p>The TMWX includes over 7,000 companies, making it one of the broadest market indices. It covers all sectors and market capitalizations, from small-cap to large-cap stocks. The index is market cap-weighted, meaning larger companies have a greater influence on the index's performance.</p>
<p>Wilshire Associates calculates and maintains the TMWX, which is market-cap weighted and rebalanced quarterly. It is often used as a benchmark for the overall U.S. equity market.</p>

<h2>Why It Matters</h2>
<p>The TMWX matters because it provides a comprehensive view of the U.S. equity market. It helps investors understand the performance of the broad market and compare it to their own portfolios. For example, if an investor's portfolio is underperforming the TMWX, it may indicate that their portfolio is not diversified enough or lacks exposure to certain sectors.</p>
<p>Moreover, the TMWX serves as a useful tool for market timing and strategic asset allocation. During market downturns, investors may use the TMWX to gauge the overall health of the market and make informed decisions about when to buy or sell stocks.</p>