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Thread: DWCP and DWCPF - the difference

  1. #1

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    Default DWCP and DWCPF - the difference

    Understanding the difference between the DWCP and the DWCPF:

    These are both funds that mirror Wilshire 4500 index (which is what the S-fund is). In a nutshell, the Wilshire 4500 is an extract of the Wilshire 5000 companies: which represent the entire US market excluding the companies of the S&P 500.

    Both of these funds (DWCP and DWCPF) include all the same companies – but the total composition of each fund is different by how much a company is represented in the fund.

    Example: Reduce the entire stock market to 5 companies, A, B, C, D and E.

    A is a large cap with 500 share in existence
    B is a mid cap with 300 shares in existence of which 180 (60%) are available for trading
    C is a mid cap with 300 shares in existence of which 120 (40%) are available for trading
    D is a small cap with 200 shares in existence of which 120 (60%) are available for trading
    E is a small cap with 200 shares in existence of which 80 (40%) are available for trading

    The Wilshire 5000 would be a composite of all five companies

    Company A represents the S&P 500

    The Wilshire 4500 would therefore only represent companies B, C, D and E.

    In determining the weight of each stock in the fund, the DWCP only looks at the TOTAL amount of shares, where the DWCPF looks at the AVAILABLE shares.

    In this example the DWCP is weighted based on a 1000 shares (300+300+200+200)
    So the DWCP would hold
    30% company B
    30% company C
    20% company D
    20% company E

    Where the DWCPF (which is what the S-fund more closely matches) is weighted based on 500 shares (180+120+120+80)
    So the DWCPF would hold
    36% company B
    24% company C
    24% company D
    16% company E

    Companies that have more available shares do not behave significantly different then companies with less available shares in the market on any given day. So in the grand scheme of things, once you factor all this across every sector and 4500 different companies, the behavior of the two funds are virtually identical despite the price difference due to their slightly different weightings.
    Last edited by Griffin; 10-17-2006 at 01:29 PM.
    Griffin's Account, Griffin's Account Talk
    'Houston, we've had a problem. We've had a main B bus undervolt.', James Lovell


  2.  
  3. #2

    Default Re: DWCP and DWCPF - the difference

    Thanks for the excellent clarification and comparison! --
    Quote Originally Posted by Griffin View Post
    Understanding the difference between the DWCP and the DWCPF:

    These are both funds that mirror Wilshire 4500 index (which is what the S-fund is). In a nutshell, the Wilshire 4500 is an extract of the Wilshire 5000 companies: which represent the entire US market excluding the companies of the S&P 500.

    Both of these funds (DWCP and DWCPF) include all the same companies – but the total composition of each fund is different by how much a company is represented in the fund.

    Example: Reduce the entire stock market to 5 companies, A, B, C, D and E.

    A is a large cap with 500 share in existence
    B is a mid cap with 300 shares in existence of which 180 (60%) are available for trading
    C is a mid cap with 300 shares in existence of which 120 (40%) are available for trading
    D is a small cap with 200 shares in existence of which 120 (60%) are available for trading
    E is a mid cap with 200 shares in existence of which 80 (40%) are available for trading

    The Wilshire 5000 would be a composite of all five companies

    Company A represents the S&P 500

    The Wilshire 4500 would therefore only represent companies B, C, D and E.

    In determining the weight of each stock in the fund, the DWCP only looks at the TOTAL amount of shares, where the DWCPF looks at the AVAILABLE shares.

    In this example the DWCP is weighted based on a 1000 shares (300+300+200+200)
    So the DWCP would hold
    30% company B
    30% company C
    20% company D
    20% company E

    Where the DWCPF (which is what the S-fund more closely matches) is weighted based on 500 shares (180+120+120+80)
    So the DWCPF would hold
    36% company B
    24% company C
    24% company D
    16% company E

    Companies that have more available shares do not behave significantly different then companies with less available shares in the market on any given day. So in the grand scheme of things, once you factor all this across every sector and 4500 different companies, the behavior of the two funds are virtually identical despite the price difference due to their slightly different weightings.

  4.  
  5. #3

    Join Date
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    Default Re: DWCP and DWCPF - the difference

    I guess I should have mentioned this:

    Long term data on the DWCP and DWCPF are not available from finance.yahoo.com (they only give 5 days of data). Getting long term data on the DWCPF is difficult (I know it's not available from bigcharts.com or cnn.money)

    Therefore, I use the DWCP for charting and analysis. I adjusted my link that is available from tsptalk to show the DWCP instead (just backspace out the f). This keeps everything apples to apples when I go from one site to the other.
    Griffin's Account, Griffin's Account Talk
    'Houston, we've had a problem. We've had a main B bus undervolt.', James Lovell

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  7. #4

    Default Re: DWCP and DWCPF - the difference

    Great info....thanks!!!

  8.  
  9. #5

    Default Re: DWCP and DWCPF - the difference

    Anyone know of a place where you can get the historical DWCP data from? Disregard.
    Last edited by ChemEng; 11-16-2006 at 02:26 PM. Reason: I found it in a later thread. Thanks...

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  11. #6

    Default Re: DWCP and DWCPF - the difference

    I hadn't read this thread. Sorry for the late response. Try the symbol EMW at StockCharts.com. Other sites use DWCP for reasons I don't understand. However, EMW closely mirrors the S fund performance and the site has extensive data.

  12.  
  13. #7

    Default Re: DWCP and DWCPF - the difference

    Quote Originally Posted by sponsor View Post
    I hadn't read this thread. Sorry for the late response. Try the symbol EMW at StockCharts.com. Other sites use DWCP for reasons I don't understand. However, EMW closely mirrors the S fund performance and the site has extensive data.
    I use that, too. Except you need to use a $ in front of the symbol. Like this:

    $emw

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  15. #8

    Default Re: DWCP and DWCPF - the difference

    You are right. I failed to specify this.

    Quote Originally Posted by fabijo View Post
    I use that, too. Except you need to use a $ in front of the symbol. Like this:

    $emw

  16.  
  17. #9

    Default Re: DWCP and DWCPF - the difference

    Quote Originally Posted by Griffin View Post
    Understanding the difference between the DWCP and the DWCPF:

    These are both funds that mirror Wilshire 4500 index (which is what the S-fund is). In a nutshell, the Wilshire 4500 is an extract of the Wilshire 5000 companies: which represent the entire US market excluding the companies of the S&P 500.

    Both of these funds (DWCP and DWCPF) include all the same companies – but the total composition of each fund is different by how much a company is represented in the fund.

    Example: Reduce the entire stock market to 5 companies, A, B, C, D and E.

    A is a large cap with 500 share in existence
    B is a mid cap with 300 shares in existence of which 180 (60%) are available for trading
    C is a mid cap with 300 shares in existence of which 120 (40%) are available for trading
    D is a small cap with 200 shares in existence of which 120 (60%) are available for trading
    E is a small cap with 200 shares in existence of which 80 (40%) are available for trading

    The Wilshire 5000 would be a composite of all five companies

    Company A represents the S&P 500

    The Wilshire 4500 would therefore only represent companies B, C, D and E.

    In determining the weight of each stock in the fund, the DWCP only looks at the TOTAL amount of shares, where the DWCPF looks at the AVAILABLE shares.

    In this example the DWCP is weighted based on a 1000 shares (300+300+200+200)
    So the DWCP would hold
    30% company B
    30% company C
    20% company D
    20% company E

    Where the DWCPF (which is what the S-fund more closely matches) is weighted based on 500 shares (180+120+120+80)
    So the DWCPF would hold
    36% company B
    24% company C
    24% company D
    16% company E

    Companies that have more available shares do not behave significantly different then companies with less available shares in the market on any given day. So in the grand scheme of things, once you factor all this across every sector and 4500 different companies, the behavior of the two funds are virtually identical despite the price difference due to their slightly different weightings.
    This was a nicely done explanation


    Sent from my iPhone using TSP Talk Forums


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S&P 500 (C Fund)
S&P 500 INDEX,RTH (^GSPC)
DWCPF (S Fund)
Dow Jones U.S. Completion Total Stock Market Index (^DWCPF)
EFA (I Fund)
iShares MSCI EAFE Index (EFA)
AGG (F Fund)
iShares Lehman Aggregate Bond (AGG)
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