Gyroscopic Investing

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?

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.

Pointedstick wrote: 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

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

robtkatz wrote: 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.