Approximating Total Stock Market

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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

Funds Morningstar
Style Box
100% Vanguard Total Stock Market Index Fund (VTSMX) (0.15%)
242523
677
333
80% Vanguard 500 Index Fund (VFINX) (0.15%)
20% Vanguard Extended Market Index Fund (VEXMX) (0.24%)

Note: This 80/20 ratio is also shown on the Vanguard Benchmark Statistics page.
242523
677
333
81% Vanguard 500 Index Fund (VFINX) (0.15%)
6% Vanguard Mid-Cap Index Fund (VIMSX) (0.21%)
13% Vanguard Small-Cap Index Fund (NAESX) (0.22%)
242522
676
333
83% Vanguard 500 Index Fund (VFINX) (0.15%)
17% Vanguard Small-Cap Index Fund (NAESX) (0.22%)
252622
565
444
86% Vanguard 500 Index Fund (VFINX) (0.15%)
14% iShares Russell 2000 Index (IWM) (0.20%)
262723
443
445
82% Vanguard 500 Index Fund (VFINX) (0.15%)
11% iShares S&P MidCap 400 Index (IJH) (0.20%)
7% iShares S&P SmallCap 600 Index (IJR) (0.20%)
242522
677
332
85% Vanguard 500 Index Fund (VFINX) (0.15%)
15% Vanguard Tax-Managed Small-Cap Fund Inv (VTMSX) (0.13%)
252623
544
354
88% Vanguard Large Cap Index Fund (VLACX) (0.20%)
12% Vanguard Small-Cap Index Fund (NAESX) (0.22%)
242523
677
333
  • 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.

How to Cite

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Please see [url=http://www.bogleheads.org/wiki/Approximating_Total_Stock_Market]Approximating Total Stock Market[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].
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US Stocks
Stock Topics Stock Basics • Preferred stock • Approximating Total Stock Market • Domestic Small Cap Value
Research Resources Vanguard SEC Filings: U.S. Stock Index Funds
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