Does anyone have any recommendations on a decent counterweight to an SP500 fund, that could be combined with an SP500 fund, to mimic a total stock market fund?
I am currently about 75% tax-deferred/25% taxable. To add to the complication, inside my(and my wife's) tax-deferred accounts, we are only about 40% self-directed, and have access to limited funds in the rest. The only passive funds we have access to are SP500, the rest are managed with steep fees.
I was thinking that I could buy small-cap or mid-cap index to counterweight out the SP500, but am unsure what to combine in appropriate amounts. Any thoughts? Balancing between several accounts and tax-deferred space is turning into a game of Jenga. I know I am probably over complicating, but I would really prefer diversifying the stock portion as much as I can.
PS - I am a long-time lurker and seriously appreciate the civilized discourse here.
Counterweight to SP500?
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patrickjhall
Re: Counterweight to SP500?
The amount of mid- and small-cap within VTI is surprisingly small, and also surprisingly difficult for me to find on the internet right now for your purposes (and a reminder to me).
If you like to be accurate, as I do, including a small-cap fund (maybe skip mid) at the proper ratio, once you can find it, should give you very close to what you are looking for without being too complicated.
You do lose some of the value, though, of VTI, as these small-cap funds have higher expense ratios and turnover rates.
If it is turning things into a headache for you, S&P will get you 95% of the way IMO.
I hardly think you will look back 10 years from now and kick yourself for not including some small cap fund along with your S&P index to more mimic VTI.
If you like to be accurate, as I do, including a small-cap fund (maybe skip mid) at the proper ratio, once you can find it, should give you very close to what you are looking for without being too complicated.
You do lose some of the value, though, of VTI, as these small-cap funds have higher expense ratios and turnover rates.
If it is turning things into a headache for you, S&P will get you 95% of the way IMO.
I hardly think you will look back 10 years from now and kick yourself for not including some small cap fund along with your S&P index to more mimic VTI.
"Men did not make the earth. It is the value of the improvements only, and not the earth itself, that is individual property. Every proprietor owes to the community a ground rent for the land which he holds."
- Thomas Paine
- Thomas Paine
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patrickjhall
Re: Counterweight to SP500?
Thanks guys!
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jimw
Re: Counterweight to SP500?
In my 401k I am Thinking 80% S&P 500, 14% S&P 400 Mid cap and 6% S&P 600 Small Cap.
Not exactly the same as TSM it has slightly more international exposure according to Morningstar's X-ray.
Not exactly the same as TSM it has slightly more international exposure according to Morningstar's X-ray.
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MachineGhost
- Executive Member
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- Joined: Sat Nov 12, 2011 9:31 am
Re: Counterweight to SP500?
You want is called the "S&P Completion Index", one such ETF is VXF. You'll have to search for mutual funds.
MG
MG
krigare wrote: Does anyone have any recommendations on a decent counterweight to an SP500 fund, that could be combined with an SP500 fund, to mimic a total stock market fund?
I am currently about 75% tax-deferred/25% taxable. To add to the complication, inside my(and my wife's) tax-deferred accounts, we are only about 40% self-directed, and have access to limited funds in the rest. The only passive funds we have access to are SP500, the rest are managed with steep fees.
I was thinking that I could buy small-cap or mid-cap index to counterweight out the SP500, but am unsure what to combine in appropriate amounts. Any thoughts? Balancing between several accounts and tax-deferred space is turning into a game of Jenga. I know I am probably over complicating, but I would really prefer diversifying the stock portion as much as I can.
PS - I am a long-time lurker and seriously appreciate the civilized discourse here.
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!