va.gov
01-03-2009, 10:55 AM
Hey, everyone--
I could swear I read this somewhere... once... , but after a lot of Googling, I can't find it anywhere.
The idea was that a total US market index fund (Wilshire 5000) isn't the same as identical amounts of S&P 500 and Wilshire Completion 4500 index funds, because the S&P fund represents so much more of the market. So if you're trying to imitate a total US fund, you wouldn't use equal amounts of the C and S funds, but 75% C and 25% S. Or something.
I've tried to untangle this long enough that I'm getting cross-eyed. Does this ring a bell with anyone? And I'm not talking about allocation preferences; just an attempt to mirror the Wilshire 5000.
Thanks for any feedback!
I could swear I read this somewhere... once... , but after a lot of Googling, I can't find it anywhere.
The idea was that a total US market index fund (Wilshire 5000) isn't the same as identical amounts of S&P 500 and Wilshire Completion 4500 index funds, because the S&P fund represents so much more of the market. So if you're trying to imitate a total US fund, you wouldn't use equal amounts of the C and S funds, but 75% C and 25% S. Or something.
I've tried to untangle this long enough that I'm getting cross-eyed. Does this ring a bell with anyone? And I'm not talking about allocation preferences; just an attempt to mirror the Wilshire 5000.
Thanks for any feedback!