Do you tilt to value, Kevin? I guess you adopted the Golden Butterfly. Did you tilt to small cap value or just value before Tyler invented that portfolio?
TSM or Total Stock Market is just a mirror of the market, is it not? If Apple is a large part of VTSAX it’s because it’s a large part of the market.
I don’t think it’s fair to say
might not want to have their entire growth asset be a total market fund whose fate depends on how exactly 7 mega-corporations fare going forward (i.e. the so-called Magnificent 7).
when it’s small cap value funds and even broad value funds that are concentrated in fewer stocks. And the components of those funds are not equal-weighted either, are they?
But more importantly, what’s Magnificent or what’s FAANG changes. They rise and fall. No one was talking about Nvidia or Super Micro Computer (SMCI) a relatively short time ago, and maybe Apple and Google will sunset in our lifetime. But the index, VTSAX, it just keeps churning out good results if you wait long enough. Despite not having the exposure in portfolio #2 in that link (tab), it has amazing returns.
I suppose when you gain more even exposure from the TSM/SCV combo, you lose out on some of the gains of the Magnificents.
This is the part of the post where I feel like I’m stating the obvious and experience self doubt because I suspect that I must be missing something
Are there funds that replicate a combo of TSM and SCV? Why isn’t it more popular?