Investors wishing to invest in Vanguard Total Stock Market Index Fund often face a situation where they have to approximate it with the funds available in their employer sponsored plans and quite possibly some other funds available in other accounts such as a Roth IRA.
This page shows a few examples of approximating Vanguard Total Stock Market Index Fund with funds covering specific parts of the market.
- These percentages were computed on Aug 16, 2008, except where otherwise noted.
- The style box numbers were computed by Morningstar Instant XRay.
- Computation was done by the method of least squares.
- Investors contemplating on using an S&P MidCap 400 fund, for example, may consider the example above that uses IJH. However, there may be slight implementation differences between the S&P MidCap 400 fund you have access to and IJH.
- Two funds may appear to track the same portion of the market (say, mid-cap), but their holdings may differ depending on the indexes they track.
- ↑ Morningstar Instant X-Ray of VTSMX updated 11 January 2013.
- ↑ Last calculated on 03 January 2013.
- ↑ The ratio for the Russell 1000 and 2000 funds was calculated 03 Jan 2013. See Boglehead Forum Thread for more on combining these two funds to approximate total stock market.
- ↑ Calculated in Morningstar X-Ray on Feb. 27, 2013. This combination is likely only of interest to investors with a 401(k) plan held at John Hancock Funds.