style box question

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letsgobobby
Posts: 11652
Joined: Fri Sep 18, 2009 1:10 am

style box question

Post by letsgobobby » Wed Jan 04, 2012 11:02 am

I instant x-rayed my domestic stocks and came up with this style box, I apologize it is not well-formatted:

---------> Value------Blend-----Growth

Large------->20-------20-------19

Medium----->7---------8--------6

Small--------->9 -------7--------3


How does this compare with a 'market neutral' box?

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kenyan
Posts: 2930
Joined: Thu Jan 13, 2011 12:16 am

Re: style box question

Post by kenyan » Wed Jan 04, 2012 11:24 am

I suppose I assume that VTSAX is market neutral.

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Retirement investing is a marathon.

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SpringMan
Posts: 5361
Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: style box question

Post by SpringMan » Wed Jan 04, 2012 11:43 am

kenyan wrote:I suppose I assume that VTSAX is market neutral.

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Your assumption is incorrect. VTSAX is not a market neutral fund, it is long only. A market neutral fund shorts some stocks while going long on others. Read about Vanguard's market neutral fund here:
https://personal.vanguard.com/us/funds/ ... IntExt=INT
Best Wishes, SpringMan

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mas
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Joined: Tue Feb 20, 2007 12:54 pm

Re: style box question

Post by mas » Wed Jan 04, 2012 11:50 am

SpringMan wrote:Your assumption is incorrect.
I think that there is enough ambiguity in the question that letsgobobby should clarify what he means.
My interpretation of his question was that he wanted to know what the style box for "the market" would look like. VTSAX is a good approximation for that.
If he truly did mean "market neutral" in the way that you describe, the style box could look like anything, as long as the totals add up to 0.

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SpringMan
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Joined: Wed Mar 21, 2007 11:32 am
Location: Michigan

Re: style box question

Post by SpringMan » Wed Jan 04, 2012 11:53 am

I agree since we don't know what is meant by a "market neutral" box. Maybe VTSAX satisfies his request.
Best Wishes, SpringMan

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Swamproot
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Joined: Tue Aug 19, 2008 5:10 pm

Re: style box question

Post by Swamproot » Wed Jan 04, 2012 11:54 am

I was curious how VMNFX xray-ed and had to look it up. I certainly couldn't afford the $250K minimum. :-)

12---8---6
20--12--10
14--10---9

Tilted to mid-small/value looks like.

letsgobobby
Posts: 11652
Joined: Fri Sep 18, 2009 1:10 am

Re: style box question

Post by letsgobobby » Wed Jan 04, 2012 12:10 pm

kenyan wrote:I suppose I assume that VTSAX is market neutral.

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doh, that was a good idea. thanks

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