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Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 1:00 pm
by hcs77135
Hello everyone, is there a way to see the composition of VTI on any given day as between growth/value and large/mid/small? It looks like Morning star’s 9 box shows the allocation as of 7/31/2020 but is there something that tracks it on a daily basis? Or if not VTI then even S&P 500? Thank you.

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 1:09 pm
by livesoft
Not that I know of, but let me ask why it would matter. Basically, I think VTI gets divided up by percentiles anyways, so I think it should not change its style box. Instead the style box boundaries change to match the contents of the total stock market index fund.

If one has noticed changes, then they are probably due to round-off error or some slow updating.

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 1:16 pm
by Buy_N_Hold
hcs77135 wrote: Fri Sep 18, 2020 1:00 pm Hello everyone, is there a way to see the composition of VTI on any given day as between growth/value and large/mid/small? It looks like Morning star’s 9 box shows the allocation as of 7/31/2020 but is there something that tracks it on a daily basis? Or if not VTI then even S&P 500? Thank you.
These are contrived categories intended to obfuscate more than enlighten. What ultimately makes one company "Value" and another "Growth"? Just DCA into VTI and go play a round of golf. :)

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 1:19 pm
by Wiggums
hcs77135 wrote: Fri Sep 18, 2020 1:00 pm Hello everyone, is there a way to see the composition of VTI on any given day as between growth/value and large/mid/small? It looks like Morning star’s 9 box shows the allocation as of 7/31/2020 but is there something that tracks it on a daily basis? Or if not VTI then even S&P 500? Thank you.
Since VTI is made up of a lot of companies, here’s one Representation by MorningStar

https://www.morningstar.com/etfs/arcx/vti/portfolio

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 1:23 pm
by runninginvestor
Wiggums wrote: Fri Sep 18, 2020 1:19 pm
hcs77135 wrote: Fri Sep 18, 2020 1:00 pm Hello everyone, is there a way to see the composition of VTI on any given day as between growth/value and large/mid/small? It looks like Morning star’s 9 box shows the allocation as of 7/31/2020 but is there something that tracks it on a daily basis? Or if not VTI then even S&P 500? Thank you.
Since VTI is made up of a lot of companies, here’s one Representation by MorningStar

https://www.morningstar.com/etfs/arcx/vti/portfolio
Similar to Morningstar, I only ever see it updated monthly from Vanguard's site.
I usually use to non-logged in advisor or institutional domains of Vanguard for these things, a little easier to get holding data.

https://advisors.vanguard.com/investmen ... #portfolio

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 1:39 pm
by nisiprius
According to the Morningstar Style Box™ Methodology,
Calculating Threshold Levels

Value-oriented, growth-oriented, and core stocks are each assumed to account for one-third of the total capitalization of each scoring group.
Within each scoring group, the value and growth thresholds are calculated such that each stock type closely approximates one-third of the total capitalization at the current month-end. (For U.S. scoring groups, use one-third of the total float capitalization.)
By definition, then, the total stock market always consists of 1/3rd each value, core, and blend stocks by cap weight. I am not sure why VTSAX is not exactly on the midline (which I drew in by hand), but the range of variation over 5 years has been very narrow. I assume that what's happening is that, just as the median and the mean are not exactly the same, the stocks within the most value-y third of the market could sometimes be more or less value-y than at other times.

Image

In any case, I don't think the Vanguard Total Stock Market Index Fund will ever be out of the "large blend" style box. That's one of the features of index funds. The usefulness of style box history is mostly for spotting actively managed funds that have undergone style drift.

You must read over the methodology document for yourself, but I don't think the methodology even allows for daily calculations, i.e. I think it depends on data that isn't available on a daily basis.

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 2:41 pm
by hcs77135
Thanks everyone. I was asking because one reads so much about how FAANG/growth has been dominating the S&P 500 so I was wondering whether I should be offsetting VTI with Value Index, not for long-term purposes of overweighting value but to hedge temporarily against an over-concentration of growth. But it appears that really isn’t a the case. I suppose that, even though I’ve recently moved virtually all my equity into TSM and TISM thanks to Bogleheads, I still haven’t fully made the psychological leap to the 3-fund portfolio. So I guess it’s time to play more golf, after I learn how to play.

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 6:42 pm
by Angst
runninginvestor wrote: Fri Sep 18, 2020 1:23 pm
Wiggums wrote: Fri Sep 18, 2020 1:19 pm
hcs77135 wrote: Fri Sep 18, 2020 1:00 pm Hello everyone, is there a way to see the composition of VTI on any given day as between growth/value and large/mid/small? It looks like Morning star’s 9 box shows the allocation as of 7/31/2020 but is there something that tracks it on a daily basis? Or if not VTI then even S&P 500? Thank you.
Since VTI is made up of a lot of companies, here’s one Representation by MorningStar

https://www.morningstar.com/etfs/arcx/vti/portfolio
Similar to Morningstar, I only ever see it updated monthly from Vanguard's site.
I usually use to non-logged in advisor or institutional domains of Vanguard for these things, a little easier to get holding data.

https://advisors.vanguard.com/investmen ... #portfolio

And for those who can't handle the taste of New Morningstar, there's still Morningstar Classic:
http://portfolios.morningstar.com/fund/summary?t=VTI&region=usa&culture=en-US

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 7:01 pm
by HawkeyePierce
hcs77135 wrote: Fri Sep 18, 2020 2:41 pm Thanks everyone. I was asking because one reads so much about how FAANG/growth has been dominating the S&P 500 so I was wondering whether I should be offsetting VTI with Value Index, not for long-term purposes of overweighting value but to hedge temporarily against an over-concentration of growth. But it appears that really isn’t a the case. I suppose that, even though I’ve recently moved virtually all my equity into TSM and TISM thanks to Bogleheads, I still haven’t fully made the psychological leap to the 3-fund portfolio. So I guess it’s time to play more golf, after I learn how to play.
When in doubt, do nothing. The bulk of your investment is already in total market funds, so at this point you're much better off playing a round of golf than paying more attention to your portfolio.

Morningstar 9-Grid Style Box

Posted: Fri Sep 18, 2020 7:40 pm
by Taylor Larimore
hcs77135 wrote: Fri Sep 18, 2020 1:00 pm Hello everyone, is there a way to see the composition of VTI on any given day as between growth/value and large/mid/small? It looks like Morning star’s 9 box shows the allocation as of 7/31/2020 but is there something that tracks it on a daily basis? Or if not VTI then even S&P 500? Thank you.
hcs77135:

Many years ago, my wife and I had Don Phillips (Managing Director for Morningstar) at our home for dinner. Afterward, we talked about Morningstar and its 9-grid market style box.

Mr. Phillips told us that the style box began when he and Joe Mansueto (Morningstar founder) were having lunch. He said: "Joe took out a pencil and we designed the style box on a napkin."

Best wishes.
Taylor
Jack Bogle's Words of Wisdom: "It is no exaggeration to say that the superb Morningstar service provides all the information an investor could possibly need to evaluate a fund's characteristics, to understand a fund's persona, and to make informed decisions."

Re: Vanguard Total Stock Market Style box

Posted: Fri Sep 18, 2020 8:49 pm
by hcs77135
That’s a great story Taylor! Thank you.