Vanguard’s small cap index fund NAESX Asset Allocation

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Sgt.Pepper
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Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 7:11 pm

Thanks for this great forum and answering questions!

I have about $2k invested in Vanguard’s small cap index fund NAESX through my 401k.

In Personal Finance’s assets allocations, half of that amount is listed as mid cap stocks, half as small cap stocks.

What's the reason for this?

Thanks!

stan1
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by stan1 » Thu Sep 27, 2018 7:19 pm

Sgt.Pepper wrote:
Thu Sep 27, 2018 7:11 pm
Thanks for this great forum and answering questions!

I have about $2k invested in Vanguard’s small cap index fund NAESX through my 401k.

In Personal Finance’s assets allocations, half of that amount is listed as mid cap stocks, half as small cap stocks.

What's the reason for this?

Thanks!
There is no standard definition of what a mid cap fund and a small cap fund are. The definitions are not regulated by the government so companies can choose to name their funds what they want.

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Alexa9
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Alexa9 » Thu Sep 27, 2018 7:20 pm

It's really a small/mid cap fund compared to some other small cap funds. This isn't a bad thing though. Mid caps are unloved according to "Mel": one of the more famous posters on here and often outperformed small caps with less volatility. There is also a mid cap fund and I'm not sure the range of market cap for that. You may just want to tilt more heavily if that's what you're going for. I'd consider tilting to small value as well and there are endless discussions about that on here. Small, mid, and large cap are somewhat arbitrary but Vanguard's small cap is larger than others.

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Sgt.Pepper
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 7:39 pm

Yes just checked NAESX's holdings and it looks like they're largest single holding is at $12B market cap. Investopedia has small caps at <$10B

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Sgt.Pepper
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 7:45 pm

Any recommendations Alexa9 or anyone on low-cost funds for microcaps?

My motivation is to get to my target asset allocations between large/mid/small while waiting for ESPP to get qualified disposition status.

That introduced a huge large-cap growth stock tilt to my portfolio

Thanks!

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Alexa9
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Alexa9 » Thu Sep 27, 2018 8:17 pm

If you copy and paste all the options in your 401k, we can help.
I like IJS for Small Value and VSS for international small, although they may not be available. I'm not familiar with many microcap funds and I don't know whether or not microcap is too small long term (more volatile and risky, possibly better returns). As indexing rapidly becomes more popular, I'm sure we will see more options with factor tilting eventually.

beardsworth
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by beardsworth » Thu Sep 27, 2018 8:19 pm

Sgt.Pepper wrote:
Thu Sep 27, 2018 7:11 pm
In Personal Finance’s assets allocations, half of that amount is listed as mid cap stocks, half as small cap stocks.

What's the reason for this?
There was another thread along similar lines, several months ago:

viewtopic.php?t=247099

HEDGEFUNDIE
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by HEDGEFUNDIE » Thu Sep 27, 2018 8:19 pm

If you want only “real” small caps in a Vanguard fund look at VTMSX and VIOO.

These track the S&P 600 index, where the largest company is only $6B in market cap.
Last edited by HEDGEFUNDIE on Thu Sep 27, 2018 8:21 pm, edited 1 time in total.

Topic Author
Sgt.Pepper
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 8:21 pm

Alexa9 let me take a look and get back to you
Last edited by Sgt.Pepper on Fri Sep 28, 2018 4:07 pm, edited 1 time in total.

Topic Author
Sgt.Pepper
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 8:27 pm

Beardsworth great thanks for that

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Sgt.Pepper
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 8:28 pm

Thanks hedgefundie

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Sgt.Pepper
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Re: Vanguard’s small cap index fund NAESX Asset Allocation

Post by Sgt.Pepper » Thu Sep 27, 2018 8:35 pm

Alexa9 here’s what we got

Blended Fund Investments -- TRP RETIRE 2005 F %
Blended Fund Investments -- TRP RETIRE 2010 F %
Blended Fund Investments -- TRP RETIRE 2015 F %
Blended Fund Investments -- TRP RETIRE 2020 F %
Blended Fund Investments -- TRP RETIRE 2025 F %
Blended Fund Investments -- TRP RETIRE 2030 F %
Blended Fund Investments -- TRP RETIRE 2035 F %
Blended Fund Investments -- TRP RETIRE 2040 F %
Blended Fund Investments -- TRP RETIRE 2045 F %
Blended Fund Investments -- TRP RETIRE 2050 F %
Blended Fund Investments -- TRP RETIRE 2055 F %
Blended Fund Investments -- TRP RETIRE 2060 F %
Bond Investments Stable Value MIP CL 2
view restriction(s) %
Bond Investments Income DODGE & COX INCOME 10% %
Stock Investments Large Cap ABF LG CAP VAL INST %
Stock Investments Large Cap FID CONTRAFUND POOL %
Stock Investments Large Cap JPM US EQUITY R6 %
Stock Investments Large Cap VANG INST INDEX PLUS 40% %
Stock Investments Mid-Cap VANG MIDCAP IDX INST 10% %
Stock Investments Mid-Cap VANG STRATEGIC EQ %
Stock Investments Small Cap VANG SM CAP IDX INST 5% %
Stock Investments International AF EUROPAC GROWTH R6 %
Stock Investments International OPP INTL SMALL CAP %
Stock Investments International VANG TOT INTL STK IS 35%

Rightmost column is my current contribution elections

Thanks!

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