Can I replicate TSM with SP500, SP400 and Russell 2000?
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golfallday
- Posts: 118
- Joined: Sat Feb 14, 2009 3:43 am
- Location: College Point, NY
Can I replicate TSM with SP500, SP400 and Russell 2000?
My 457 plan recently added very low cost Northern Trust Index funds that track SP400 Index and Russell 2000 Index. I already use VIIIX as my sole equity holding in this plan. Can I replicate the Total US Stock Market with these 3 funds? What weighting? I tried searching the boards for the answer and came up empty. Thanks for the help, and I'm sorry for the trouble if this has been answered before.
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golfallday
- Posts: 118
- Joined: Sat Feb 14, 2009 3:43 am
- Location: College Point, NY
Re: Can I replicate TSM with SP500, SP400 and Russell 2000?
Never mind, I found it on Bogleheads Wiki "Approximating Total Stock Market". The recommendation is TSM = 86% SP500 + 14% Russell 2000. No parking spot for the SP400. Interesting. Oh well, thanks anyway. I suspect it's difficult to Frankenstein the TSM with funds that track competing indices (SP, MSCI, Russell, and perhaps Dow Jones).