Talk:Vanguard small cap funds FAQ

Hi all,

I'm starting a FAQ page on small cap funds, but I'll have to break for now. I hope I'm doing it correctly and would appreciate any input. I noticed that my questions are coming out in bold type. I tried to copy FAQ from International funds where the questions are not in bold. Why am I getting bold print?

Some additional questions I thought of including:

How tax efficient are these funds?

Which funds can I hold in taxable?

What are expected returns of the different small cap funds?

How much do I overweight if I want to tilt?

I have to break for awhile and I saved the page, so I guess it's there but incomplete. Is there a way to save without actually publishing? Paul 14 March 2010 (UTC)


 * Paul, there is nothing wrong with your formatting. The bold print is due to your placing the questions in subheaders. This allows the questions to become organized in the automated table of contents. We can place this page in the development category if you want it to be considered a work-in-progress, but this in not essential. Undeveloped pages are known as "stub" pages in wiki parlance, and simply await development. I have pm'd a host of wiki editors to help collaborate on this page. I suggested some questions along the lines of the ones you have suggested above:


 * We might want to touch on the theoretical reasons for tilting to small cap/ small cap value allocations (Fama French). We have wiki links for Fama French and value tilting.


 * We might want to discuss retirement plan offerings (which often only include one reasonable stock fund, an S&P 500 fund) so that an investor wishing to invest in the total market would need to add additional funds to the portfolio. We have wiki links for approximating total market indexing.


 * We might want to talk about asset location. Should one prefer the tax-managed fund or the small cap index funds for taxable investing?


 * Tax loss harvesting?


 * Funds vs. ETF's?


 * What about international small caps?--Blbarnitz 18:22, 14 March 2010 (UTC)

--- Barry - Since you gave me the link I thought I would try putting in the items I PM you just to get a little familiarity with the process. Thanks. Randy

---

Under discussion of small cap foreign, might want to include something about Foreign Tax credit or link to appropriate comments in general foreign investment section.

This is from my reading of the board and would need to be researched, but to expand on your "Funds vs ETF's" item, it would be pertinent to point out that there are few low cost non-ETF index fund options available in the international small cap area.

Some points related to the high costs of investing in international small caps (not the high costs of active funds, but the costs of actually buying the stocks). Particularly as related to Vanguard's fund/ETF as it includes Emerging Markets which have additional funds. I think many beginners are losing track of the advantages of some assets because of some minor costs as pointed out by Landy:

"Are you saying that you are missing an important asset class in your portfolio - especially Foreign Small Caps which can be very costly - because a $1,000 investment has a $7.5 fee that goes back to the fund?

Say it isn't so!... this is losing the forest for the trees or penny wise, pound foolish."

in this recent conversation: http://www.bogleheads.org/forum/viewtopic.php?t=51837

Depending upon how far Paul wants to go with things, he might also one to point out some of the problems with historical returns in the U.S. small cap growth area. I do not know how well that carries to the international, but I vaguely remember someone saying it did. (Edit from what I PM'ed - in other words, that value tilting has an advantage in international small cap as it does in U.S.) -- I'll plug away on some Q and A in the next few days as time permits, but if anyone wants to jump in with a contribution, that would be great.

Paul

I'd like to help, but it won't be for a while. I'm working on the new Comparing Investments page.

A few pointers on wiki editing: Take a look at the NEW WIKI TOOLBAR NOW AVAILABLE sticky in the forum. The short answer: Select the text and hold your cursor over the toolbar button, help will appear (tooltip). If you don't select any text and click on the button, an example will be put in its place.

Here are the Fama and French Three-Factor Model and Value Tilting - Stock pages.

I'm always available if you need assistance with the wiki formatting. Just let me know. --LadyGeek 22:16, 14 March 2010 (UTC)

I'll pitch in some here and there, an idea I have is to add the Russell 2000 and the arbitrage issues, Vanguard doesn't use it but it is available in a lot of company plans, but I am not an expert. Mikep 23:21, 14 March 2010 (UTC)


 * I have made a start at filling in some of the questions. I have also added verifying data, as well as providing internal wiki links. --Blbarnitz 17:02, 15 March 2010 (UTC)

The talk page for Value Tilting - Stock had the forum thread which was the basis for this page (topic page updated with link).
 * value tilting: the numbers, started by pkcrafter

That should help answer the FAQ question on tilt. I need to focus on Comparing Investments for now. If it goes unanswered, I can take a crack at it. --LadyGeek 20:51, 15 March 2010 (UTC)