Search found 4 matches

by Helping hand
Thu Jan 17, 2019 12:22 am
Forum: Investing - Theory, News & General
Topic: Does Microcap add diversification to Total Stock Market Index fund?
Replies: 20
Views: 2303

Re: Does Microcap add diversification to Total Stock Market Index fund?

Fees are negative alpha, so agreeed they will play a factor in your return experience. Since the graph contains mostly small cap indices and styles there will be some mixing of styles and likely not a fair comparison. IWC is a Microcap fund and has stood up very well against BRSIX. We’ll assume they...
by Helping hand
Wed Jan 16, 2019 11:39 pm
Forum: Personal Investments
Topic: Why is my fund balance lower than my cost basis?
Replies: 4
Views: 934

Re: Why is my fund balance lower than my cost basis?

Likely the capital gain payments a long with your dividend payments, assuming you are reinvesting and adjusted your cost basis up. Not ideal, but if the cap gains are long term, there is slightly less of tax impact than short term gains. Either way, you are paying additional taxes along the way beca...
by Helping hand
Wed Jan 16, 2019 11:24 pm
Forum: Investing - Theory, News & General
Topic: Does Microcap add diversification to Total Stock Market Index fund?
Replies: 20
Views: 2303

Re: Does Microcap add diversification to Total Stock Market Index fund?

Fidelity tracks the Dow Jones Total Stock Market that covers 95% of total US market cap and already owns some micro caps, albeit small, so I believe your question is more about overweighting micro caps. To each his own, but 10% would be a pretty large overweight given small caps are ~8-10% of a tota...
by Helping hand
Wed Jan 16, 2019 10:56 pm
Forum: Investing - Theory, News & General
Topic: Why does VGSLX hold Van R.E. Index II Fund
Replies: 8
Views: 1431

Re: Why does VGSLX hold Van R.E. Index II Fund

It is likely truly for capacity reason as REITs have ownership caps, which is typical 10% ownership, and the fund as been over those caps for many of the REITs. You can find in language to that effect in the prospectus. There are several rules that limit the amount an investor can own of a specific ...