Changes

Jump to navigation Jump to search
→‎Other Considerations: improve vertical whitespace.
Line 50: Line 50:  
====Other Considerations====
 
====Other Considerations====
   −
* A total stock market index fund represents the whole market, while an S&P 500 fund does not. Now that total stock market funds exist and have expenses just as low as S&P 500 funds, total stock market funds are preferable. In practice, the importance and magnitude of the difference is a subject of debate. In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio.
+
* A total stock market index fund represents the whole market, while an S&P 500 fund does not. Now that total stock market funds exist and have expenses just as low as S&P 500 funds, total stock market funds are preferable. In practice, the importance and magnitude of the difference is a subject of debate. In a 401(k) plan with limited choices one might very well opt for an S&P 500 index fund to serve as the domestic stock component of a three-fund portfolio.<br/><br/>Alternatively, you can [[Approximating Total Stock Market |approximate a Total Stock Market fund]] by combining an S&P 500 index fund with one or more mid-cap and small-cap funds.  There are "completion index" funds such as Vanguard's Extended Market fund (available as an open-end fund as VEXMX and as an ETF as VXF) which can be added to an S&P 500 fund in a specified ratio to produce a hybrid which should perform like a Total Stock Market fund.<br/>
Alternatively, you can [[Approximating Total Stock Market |approximate a Total Stock Market fund]] by combining an S&P 500 index fund with one or more mid-cap and small-cap funds.  There are "completion index" funds such as Vanguard's Extended Market fund (available as an open-end fund as VEXMX and as an ETF as VXF) which can be added to an S&P 500 fund in a specified ratio to produce a hybrid which should perform like a Total Stock Market fund.
     −
* Vanguard perplexes investors by offering two virtually interchangeable international stock market index funds: Vanguard Total International Stock Index Fund (VGTSX) and Vanguard FTSE All-World ex-US (VFWIX). See [[FAQ_on_Vanguard_International_Funds#Should_I_buy_Total_International_or_FTSE_All-World_ex-US.3F|Should I buy Total International or FTSE All-World ex-US]] for the details.
+
* Vanguard perplexes investors by offering two virtually interchangeable international stock market index funds: Vanguard Total International Stock Index Fund (VGTSX) and Vanguard FTSE All-World ex-US (VFWIX). See [[FAQ_on_Vanguard_International_Funds#Should_I_buy_Total_International_or_FTSE_All-World_ex-US.3F|Should I buy Total International or FTSE All-World ex-US]] for the details.<br/>
   −
* One could, of course, use [[ETF]]s rather than mutual funds. For example, one could use Total Stock Market ETF (VTI), Vanguard FTSE All-World ex-US ETF (VEU) for international, and Vanguard Total Bond Market ETF (BND).
+
* One could, of course, use [[ETF]]s rather than mutual funds. For example, one could use Total Stock Market ETF (VTI), Vanguard FTSE All-World ex-US ETF (VEU) for international, and Vanguard Total Bond Market ETF (BND).<br/>
    
====Combining domestic and international stocks====
 
====Combining domestic and international stocks====
63

edits

Navigation menu