Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

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Money Market
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Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

Post by Money Market » Tue Mar 13, 2018 3:32 pm

There's 3637 in the fund vs 3580 in the index.

https://personal.vanguard.com/us/funds/ ... true#tab=2

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Alexa9
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Re: Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

Post by Alexa9 » Tue Mar 13, 2018 3:35 pm

The individual micro cap stocks are practically insignificant anyways by the nature of a market weighted fund. I would imagine they change frequently in the index.

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badbreath
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Re: Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

Post by badbreath » Tue Mar 13, 2018 4:24 pm

Vanguard 500 Index Fund has 507 stocks and the benchmark has 505. They just can't count
“While money can’t buy happiness, it certainly lets you choose your own form of misery.” Groucho Marx

FactualFran
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Re: Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

Post by FactualFran » Tue Mar 13, 2018 4:28 pm

One reason is that the fund continues to list as a stock holding a security that remains after a stock has been dropped from the index, say because a previously publicly traded corporation has been acquired by a private company. It may take some time for a security that remains of a previously public traded corporation to completely disappear.

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oldzey
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Re: Why does Vanguard Total Stock Market (VTSAX) have more stocks than its tracked index

Post by oldzey » Wed Mar 14, 2018 11:07 am

VTSAX goes to eleven.

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"The broker said the stock was 'poised to move.' Silly me, I thought he meant up." ― Randy Thurman

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