UC Domestic equity fund question

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immunologycls
Posts: 8
Joined: Sun Feb 11, 2018 10:37 pm

UC Domestic equity fund question

Post by immunologycls » Tue Feb 13, 2018 10:10 pm

Hello all,

To those who are familiar with the UC retirement program, what does this quote actually mean:

"The Fund seeks to provide investment results approximating the total return performance of the securities included in
the Russell 3000 Index and is invested in a Russell 3000 Tobacco Free (TF) Index Fund managed by State Street Global
Advisors. "

I've tried to find the tobacco free index fund without luck. Is this the same as the Russell 3000 index fund? I've called a Fidelity agent and he said that this is not representative of either S&P index or the total market index. What exactly is this tracking.

Also, I don't mind risk. Is it a decent idea to go with 80% UC domestic equity and 20% UC International Equity Index Fund?
It's very hard for me to imagine that the ER on the UC domestic equity fund is only 0.005%.

Cheers

alex_686
Posts: 3652
Joined: Mon Feb 09, 2015 2:39 pm

Re: UC Domestic equity fund question

Post by alex_686 » Tue Feb 13, 2018 10:28 pm

I am going to take a guess here. I don't know what UC is, but I am assuming the pension manager does not like tobacco stocks. He went to Russell and asked them to create a custom index. And here we are!

Index providers create thousands of indexes. In this case, standard index minus tobacco. Very easy to do. Not all them get published in the "free" section - most of the time you need to pay to get premium access. There may not be any public funds that use this index, only private ones like your pension plan. Infuriating, I understand but also common.

immunologycls
Posts: 8
Joined: Sun Feb 11, 2018 10:37 pm

Re: UC Domestic equity fund question

Post by immunologycls » Tue Feb 13, 2018 10:51 pm

alex_686 wrote:
Tue Feb 13, 2018 10:28 pm
I am going to take a guess here. I don't know what UC is, but I am assuming the pension manager does not like tobacco stocks. He went to Russell and asked them to create a custom index. And here we are!

Index providers create thousands of indexes. In this case, standard index minus tobacco. Very easy to do. Not all them get published in the "free" section - most of the time you need to pay to get premium access. There may not be any public funds that use this index, only private ones like your pension plan. Infuriating, I understand but also common.
That makes sense. So basically, less profit, haha. Upon further research about russell 3000, it appears that this also mimics US the total stock market with near identical similarities. I think I'm going to go all in these two funds :) Thank you

Also, UC is for University of California.

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