Approximating Total Stock Market
From Bogleheads
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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.
Examples
- These percentages were computed on Aug 16, 2008.
- 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.
References
- ↑ Morningstar X-Ray of VTSMX (only) shows no change as of December 2010.
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| US Stocks | ||
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| Stock Topics | Stock Basics • Preferred stock • Approximating Total Stock Market • Mid caps• Small caps • Domestic Small Cap Value • Slice and Dice | |
| Research Resources | Vanguard SEC Filings: U.S. Stock Index Funds | |
