VFIAX vs. VSMAX [Vanguard 500 Index vs. Small-Cap Index]

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jessikaur
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VFIAX vs. VSMAX [Vanguard 500 Index vs. Small-Cap Index]

Post by jessikaur » Thu Nov 09, 2017 9:39 am

vfiax - 0.05 ER
vsmax - 0.06 ER

have these two options in my HSA....

it looks like VSMAX did better over the last ten years...

what do you guys think?

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BolderBoy
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Re: VFIAX vs. VSMAX

Post by BolderBoy » Thu Nov 09, 2017 10:10 am

jessikaur wrote:
Thu Nov 09, 2017 9:39 am
vfiax - 0.05 ER
vsmax - 0.06 ER
What do those symbols stand for?
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

dbr
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Re: VFIAX vs. VSMAX

Post by dbr » Thu Nov 09, 2017 10:19 am

jessikaur wrote:
Thu Nov 09, 2017 9:39 am
vfiax - 0.05 ER
vsmax - 0.06 ER

have these two options in my HSA....

it looks like VSMAX did better over the last ten years...

what do you guys think?
I think whatever those funds are you should consider what your overall asset allocation should look like and decide which of those makes sense in that context. You should do some research on asset classes and understand the difference between those two funds and other asset classes as well. Swedroe and Ferri both have good books on the subject. https://www.bogleheads.org/wiki/All_Abo ... Allocation

jessikaur
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Re: VFIAX vs. VSMAX

Post by jessikaur » Thu Nov 09, 2017 11:29 am

sorry,

one is a large cap index fund
and one is a small cap index fund..

what are thoughts on diversfying domestically, like with large mid and small cap funds...

for instance, vanguard has vimax which is a mid cap
vieiex which is an extended market..
i'm essentially trying to do a whole market index when those are not necessarily availble...
some of my options only have large cap...

Lou354
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Re: VFIAX vs. VSMAX

Post by Lou354 » Thu Nov 09, 2017 11:56 am

The wiki has information about approximating the total US stock market using a combination of other funds.
https://www.bogleheads.org/wiki/Approxi ... ock_market

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CABob
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Re: VFIAX vs. VSMAX

Post by CABob » Thu Nov 09, 2017 12:35 pm

it looks like VSMAX did better over the last ten years...
Since they are both index funds I don't think you should base a decision over past performance, even for 10 years. I would assume, although perhaps you should check, that they followed their respective indexes. The decision is whether you want exposure to that segment of the market.
what are thoughts on diversfying domestically, like with large mid and small cap funds...
Generally, I think it is a good idea although I would prefer a total market fund. If you do decide to hold multiple funds you also need to decide the percentages of each of the pieces.
Bob

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LadyGeek
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Re: VFIAX vs. VSMAX [Vanguard 500 Index vs. Small-Cap Index]

Post by LadyGeek » Thu Nov 09, 2017 4:05 pm

I updated the thread title to clarify the ticker symbols.

To the members reading this thread: Please include the name of the fund along with the ticker symbols. It saves time from looking them up and will avoid confusion if the ticker symbol is mistyped.

The OP can change the thread title by editing the Subject: line in Post #1.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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