Normally I don't want to slice/dice and would rather use "total" funds, in a mostly 3 fund portfolio. But due to a fund lineup change in my 401a, I can move from
CREF Stock (70% TSM, 30% TISM) (ER 0.49%) to
TIAA-CREF S&P 500 Index Fund (Institutional)TISPX (ER 0.07%)
saving 0.42%/year on about 30% of my portfolio, which is very significant.
But then I have to reshuffle funds in various other accounts to get the right asset allocation. In my 457b I have available
BlackRock EAFE Equity Index CTF (ER 0.12%) which can partially replace the TISM that is in CREF Stock, and
BlackRock Russell 2000 Index CTF (ER 0.04%) which I can pair with SP500 to approximate TSM(~86%SP500,14% R2k) according to Bogleheads Wiki Approximating Total Stock Markethttp://www.bogleheads.org/wiki/Approxim ... ock_Market
As to Approximating Total International Stock Markethttp://www.bogleheads.org/wiki/Approxim ... ock_Market
it seems that an EAFE fund is missing Emerging Markets (EmM), International Small Caps (ISmCap), Canada, South Korea. There's no way I can fill in the 2 country gaps, so I won't even try. I can only get EmM and ISmCap in limited Vanguard IRA space, and only by sacrificing a small REIT holding to make space.
So, how about Approximating Total International Stock Market by
100% EAFE. Is that too crude? (Is it much worse than approximating TSM by 100% SP500?)
78% EAFE, 22% EmM? No smallmidcaps, but most countries are covered.
68% EAFE, 19% EmM, 13% ISmCap?
The extra funds cramp the limited Vanguard IRA space (and REITs would have to go, which doesn't bother me that much).
I don't really want to use Vanguard FTSE All-World ex-US Small-Cap Index Fund Investor Shares (VFSVX) due to the buy/sell fees, and I don't want to deal with ETFs just for one fund.
So for ISmCap, how about Vanguard International Explorer Fund (VINEX) (active, $3k min, ER 0.43%)?
I can hold some of the TISM as the single "total" fund in 529 plans (at least for the moment). The upshot is that these EmM and ISmCap would only be 1%-2% each of portfolio, but could increase to 3%-5% each as the 529s get used or shifted to cash.
Should I bother with the little funds?
[I put this in the General Investing forum, since it's really a general question about cobbling together an assset allocation from constrained fund lineups and limited IRA space to plug the gaps.]