How do I approximate Total US Stock Market Index using...

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golfallday
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How do I approximate Total US Stock Market Index using...

Post by golfallday »

...S&P 500 Index + S&P 400 Index + Russell 2000 Index? Can't find this anywhere. Thanks for any help or ideas. :confused
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triceratop
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Re: How do I approximate Total US Stock Market Index using...

Post by triceratop »

golfallday wrote:...S&P 500 Index + S&P 400 Index + Russell 2000 Index? Can't find this anywhere. Thanks for any help or ideas. :confused
85% S&P 500 Index, 15% Russell 2000 Index

https://www.bogleheads.org/wiki/Approxi ... ock_market

I'm not sure that the S&P 400 Index is needed, but you could find a weighting that works with that as well I am sure. But, why?
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."
afan
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Re: How do I approximate Total US Stock Market Index using...

Post by afan »

If this is a real life question, note that the performance of the total stock market is very well modeled by the S&P500 alone. You could just use that fund/etc and be done with it. If you feel the need to add mid and small caps, watch the fees. Many funds in this space charge so much that it would wipe out the advantage of having the exposure.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama
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whaleknives
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Re: How do I approximate Total US Stock Market Index using...

Post by whaleknives »

afan wrote:If this is a real life question, note that the performance of the total stock market is very well modeled by the S&P500 alone. You could just use that fund/etc and be done with it. If you feel the need to add mid and small caps, watch the fees. Many funds in this space charge so much that it would wipe out the advantage of having the exposure.
:thumbsup And, because of overlap, you can come within 1% of Total Stock Market in all style grids by using just 82% Vanguard 500 Index Fund (VFINX) and 18% Vanguard Small-Cap Index Fund (NAESX). Approximating total stock market
"I'm an indexer. I own the market. And I'm happy." (John Bogle, "BusinessWeek", 8/17/07) ☕ Maritime signal flag W - Whiskey: "I require medical assistance."
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