Currently, my 401(k) has a lot of great options. Our plan has a full range of VG TR funds, as well as the following VG "Signal" class funds: Total Bond, Total Int'l, 500, Small Cap, Mid Cap. Obviously missing from our family of Signal funds is TSM. As far as the US Equity portion of my portfolio goes, I currently have it split 80/20 500/Small Cap. I was pointed to the "Approximating TSM" Wiki page in an earlier post, but given the current size of my portfolio (~$37k) I didn't think it was worth it to try and include a small proportion of Mid Cap to better approximate TSM.
With that in mind, what is everyone's take on whether it is worth the (slight) extra cost to even include Small Cap? Should I also be including Mid Cap? Or, for simplicity's sake, is a 500 fund good enough?
Thoughts?
Opinions on 401(k) Fund Options for US Equity
Re: Opinions on 401(k) Fund Options for US Equity
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Last edited by Colbey on Fri Jan 24, 2014 11:09 am, edited 1 time in total.
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Re: Opinions on 401(k) Fund Options for US Equity
80/20 works, leave it as is - simplify. When the account gets larger, you can then practice more splitting and re-allocating.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
Re: Opinions on 401(k) Fund Options for US Equity
That small-cap fund actually includes quite a few mid-cap stocks.
20% tilt is fine.
20% tilt is fine.