Emulating Vanguard total stock market
Emulating Vanguard total stock market
Hello everyone! I am trying to move from a target fund in my 457 to just a 80/20 mix of stocks and bonds so that I can take advantage of the cheaper expense ratios like I have already done in my Roth IRA. The problem I am having is I cant figure out which fund is the equivalent of Vanguard total stock market (VTSAX) The Vanguard options I am given are;
(Listed under large cap choices)
Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
Vanguard PRIMECAP Fund - Admiral Shares (VPMAX) Expense ratio of 0.34
(Listed under Mid-Cap choices)
Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
Vanguard Capital Opportunity Fund- Admiral Shares (VHCAX) Expense ratio of 0.38
(Listed under Small cap)
Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
Is one of these comparable to Vanguards Total stock market or do I have to make a blend of all these funds? Would it be easier to just leave it in the T. Rowe price Retirement date fund which has an expense ratio of 0.72 (I was also trying to trim down the amount of international exposure in my portfolio but do like the simplicity of target funds) Thank you for any help
(Listed under large cap choices)
Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
Vanguard PRIMECAP Fund - Admiral Shares (VPMAX) Expense ratio of 0.34
(Listed under Mid-Cap choices)
Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
Vanguard Capital Opportunity Fund- Admiral Shares (VHCAX) Expense ratio of 0.38
(Listed under Small cap)
Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
Is one of these comparable to Vanguards Total stock market or do I have to make a blend of all these funds? Would it be easier to just leave it in the T. Rowe price Retirement date fund which has an expense ratio of 0.72 (I was also trying to trim down the amount of international exposure in my portfolio but do like the simplicity of target funds) Thank you for any help
Re: Emulating Vanguard total stock market
You can combine positions in the inst. index, mid-cap, and small cap. Forget about the other ones. Someone will post the right proportions.
Re: Emulating Vanguard total stock market
This boglehead link might be helpful to you:
https://www.bogleheads.org/wiki/Approxi ... ock_market
https://www.bogleheads.org/wiki/Approxi ... ock_market
- njboater74
- Posts: 633
- Joined: Mon Apr 25, 2016 8:21 pm
Re: Emulating Vanguard total stock market
This should give you a pretty good approximation:
81% - Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
4% - Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
15% - Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
https://www.bogleheads.org/wiki/Approxi ... ock_market
Enjoy
81% - Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
4% - Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
15% - Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
https://www.bogleheads.org/wiki/Approxi ... ock_market
Enjoy
When the mob and the press and the whole world tell you to move, your job is to plant yourself like a tree beside the river of truth and tell the whole world - 'No, YOU move'--Captain America, Boglehead
Re: Emulating Vanguard total stock market
Thanks, and unless you believe in the "unloved" midcaps, that fund might be skipped. Also, many small cap funds have a significant holding in midcaps.njboater74 wrote:This should give you a pretty good approximation:
81% - Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
4% - Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
15% - Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
https://www.bogleheads.org/wiki/Approxi ... ock_market
Enjoy
- LAlearning
- Posts: 1365
- Joined: Wed May 09, 2012 12:26 pm
- Location: Los Angeles
Re: Emulating Vanguard total stock market
You can Google it. It's in the wiki. Approximating total stock...
I know nothing!
Re: Emulating Vanguard total stock market
Thank you for all the replys! I saw the wiki but I didn't realize that Vanguard 500 index fund (VFINX) and Vanguard Inst'l Index Fund - Plus shares (VIIIX) were essentially the same thing! Silly me for not comparing the two funds! Anyways thanks again!
Re: Emulating Vanguard total stock market
So it would still track pretty closely if i just went 85% large cap (VIIIX) and 15% Small cap (VSCPX) ? or would it be better to do 80/20? That seems to make it a little easier re balancing if I do not have to add a fund for just 4%.dbr wrote:Thanks, and unless you believe in the "unloved" midcaps, that fund might be skipped. Also, many small cap funds have a significant holding in midcaps.njboater74 wrote:This should give you a pretty good approximation:
81% - Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
4% - Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
15% - Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
https://www.bogleheads.org/wiki/Approxi ... ock_market
Enjoy
Re: Emulating Vanguard total stock market
Actually the S&P 500 and the total US stock market already track very closely. It might not be that big a deal to just buy VIIIX. Whether you put in 15% or 20% of that small cap fund will not matter much. What will not track is small cap by itself, so if you do that be sure to stick to your allocation an don't bail if small cap disappoints. Note the actual allocation to small cap in the total market is about 9% by the M* style box, but that small cap fund is not pure small cap.ectoman wrote:So it would still track pretty closely if i just went 85% large cap (VIIIX) and 15% Small cap (VSCPX) ? or would it be better to do 80/20? That seems to make it a little easier re balancing if I do not have to add a fund for just 4%.dbr wrote:Thanks, and unless you believe in the "unloved" midcaps, that fund might be skipped. Also, many small cap funds have a significant holding in midcaps.njboater74 wrote:This should give you a pretty good approximation:
81% - Vanguard Inst'l Index fund - Plus shares (VIIIX) Expense ratio of 0.02
4% - Vanguard Mid Cap Index Fund- Inst'l Plus Shares (VMCPX) Expense ratio of 0.05
15% - Vanguard Small cap Index Fund- Inst'l Plus shares (VSCPX) Expense ratio of 0.05
https://www.bogleheads.org/wiki/Approxi ... ock_market
Enjoy
-
- Posts: 464
- Joined: Mon Aug 29, 2016 10:26 am
Re: Emulating Vanguard total stock market
Vanguard recreates the total stock market index in its variable annuity total stock market index portfolio, with the following two funds:
500 Index 82.1%
Extended Market Index 17.9%
The only issue with this approach is that some defined contgribution plans do not include the extended market index fund in its institutional share classes> Here are the expense ratios, along with the ticker symbols, from the semiannual reports for the investor, Admiral, ETF and various institutional class shares:
Ticker Symbol VEXMX VXF VEXAX VIEIX VEMPX VSEMX
Expense Ratio 0.22% 0.09% 0.09% 0.07% 0.05% 0.02%
500 Index 82.1%
Extended Market Index 17.9%
The only issue with this approach is that some defined contgribution plans do not include the extended market index fund in its institutional share classes> Here are the expense ratios, along with the ticker symbols, from the semiannual reports for the investor, Admiral, ETF and various institutional class shares:
Ticker Symbol VEXMX VXF VEXAX VIEIX VEMPX VSEMX
Expense Ratio 0.22% 0.09% 0.09% 0.07% 0.05% 0.02%
Re: Emulating Vanguard total stock market
Another option is to piece together you portfolio from different locations. For example, my TIAA 401a has a low cost S&P500 fund, but the options to fill the gap in that account are expensive and mismatched. So I use an Extended Market index fund in my Fidelity 403b. That way I cover TSM almost exactly (using the right proportions) at low cost.
I would much rather use a single fund, but I can't, so this is the next best way.
I would much rather use a single fund, but I can't, so this is the next best way.