Small Cap Index Fund ETF instead of S&P 500 Index Fund ETF

[robtkatz]

For my Permanent Portfolio Stock Allocation, I'm using, IJR: iShares S&P SmallCap 600 Index Fund ETF instead of IVV: iShares Core S&P 500 Index Fund ETF.  Is that a good substitute?

[Pointedstick]

The more stocks from the more categories in your index, the better. So 600 is better than 500, but only small caps is worse than all the stocks in the S&P 500. I'd stick with a broad market index for a traditional PP.

[Ad Orientem]

The more stocks from the more categories in your index, the better. So 600 is better than 500, but only small caps is worse than all the stocks in the S&P 500. I'd stick with a broad market index for a traditional PP.

+1

[Kbg]

Or just split the difference and go with a mid cap index.

[Mike59]

For my Permanent Portfolio Stock Allocation, I'm using, IJR: iShares S&P SmallCap 600 Index Fund ETF instead of IVV: iShares Core S&P 500 Index Fund ETF.  Is that a good substitute?

Personally I don't like using small caps for one reason- the volatility is too high relative to other Permanent portfolio holdings. In a severe downturn you may be forced to rebalance into stocks earlier and possibly more times than with large caps. I feel more comfortable sitting near 25%x4 where possible but maybe that's my own phobia.  I am a fan of VT and its exposure to  6000+ stocks.