The hazards of index funds

Discussion of the Stock portion of the Permanent Portfolio

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Desert
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Re: The hazards of index funds

Post by Desert » Sat Sep 01, 2018 4:07 pm

Tyler wrote:
Sat Sep 01, 2018 10:32 am
If you're interested in factors and looking to diversify away from the capitalization-based market as a whole, I'd recommend reading this book by Larry Swedroe. It will help you understand each of the major factors, how they work, and just how dependable they are so you're not swinging in the dark at whatever sounds compelling at the time.
+1 That's an excellent book.
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dualstow
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Re: The hazards of index funds

Post by dualstow » Mon Sep 03, 2018 2:49 pm

Xan wrote:
Wed Jun 27, 2018 8:49 am
I've taken to doing Total Stock Market funds. I've also been wondering about weightings other than market cap, but funds like that seem to have much higher expenses.
+1 on Total Market.

I started doing that late considering I’ve been preaching it forever, but my Tot Mkt is finally starting to catch up with my midcap, smallcap, and s & p.

I feel very comfortable with VTSAX. No churn or unnecessary distributions. If it crashes it’s a sale, not a falling knife.
TLT hit a 52-wk high, or so says an email from Vanguard 📈
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ochotona
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Re: The hazards of index funds

Post by ochotona » Mon Sep 03, 2018 5:57 pm

dualstow wrote:
Mon Sep 03, 2018 2:49 pm
Xan wrote:
Wed Jun 27, 2018 8:49 am
I've taken to doing Total Stock Market funds. I've also been wondering about weightings other than market cap, but funds like that seem to have much higher expenses.
+1 on Total Market.

I started doing that late considering I’ve been preaching it forever, but my Tot Mkt is finally starting to catch up with my midcap, smallcap, and s & p.

I feel very comfortable with VTSAX. No churn or unnecessary distributions. If it crashes it’s a sale, not a falling knife.
VTSAX is 0.93% microcap, 5.54% small cap, 17.61% mid cap, 75.92% large and giant cap.

If I turn my Roth IRA into a small cap account, my 401(k) into a mid cap account, and leave Traditional IRAs alone, then I arrive approximately at VTSAX. The problem is balkanization across different plans, and not all of them offer small and mid cap offerings... someday everything will be in one place, and much simpler to manage.
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dualstow
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Re: The hazards of index funds

Post by dualstow » Mon Sep 03, 2018 8:35 pm

Do they all offer VTSAX?
ochotona wrote:
Mon Sep 03, 2018 5:57 pm
VTSAX is 0.93% microcap, 5.54% small cap, 17.61% mid cap, 75.92% large and giant cap.

If I turn my Roth IRA into a small cap account...
TLT hit a 52-wk high, or so says an email from Vanguard 📈
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ochotona
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Re: The hazards of index funds

Post by ochotona » Tue Sep 04, 2018 2:13 am

dualstow wrote:
Mon Sep 03, 2018 8:35 pm
Do they all offer VTSAX?
ochotona wrote:
Mon Sep 03, 2018 5:57 pm
VTSAX is 0.93% microcap, 5.54% small cap, 17.61% mid cap, 75.92% large and giant cap.

If I turn my Roth IRA into a small cap account...
Not at all. The 401k is the problem. I have to split things up
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