Mimic total stock in vanguard 401k

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althea
Posts: 21
Joined: Fri Jun 07, 2019 12:22 pm

Mimic total stock in vanguard 401k

Post by althea »

Vinix sp500
Vimax midcap
Vsmax small cap

What percentage of each would most closely mimic the total us market?

Found an article from a few years back stating 81% vinix, 15% vsmax, 4% vimax

Thoughts?
sycamore
Posts: 1336
Joined: Tue May 08, 2018 12:06 pm

Re: Mimic total stock in vanguard 401k

Post by sycamore »

You may have found those 81/4/15 percentages in https://www.bogleheads.org/wiki/Approxi ... ock_market ?

That's an entirely reasonable way to do it. Anything close to those splits is good enough, like 80% S&P 500 with 20% small cap if you'd like to use only two funds.

Know that your fund choices have some overlap because S&P 500 follows S&P indexes whereas the Vanguard mid and small cap funds follow the CRSP indexes. This also won't really matter in the long run, IMO.

Sometimes your approximation will outperform, other times it'll underperform. In the long run your funds' performance will be very close to Total Stock Market.
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