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Thread: proportion of C and S funds to imitate total US market index

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    Default proportion of C and S funds to imitate total US market index

    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!


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  3. #2

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    Default Re: proportion of C and S funds to imitate total US market index

    Great question. I've wondered about this one myself and figured it has to be about 75C, 25S also. Reason being, most indexes are heavily overweight in 10-20 individual stocks instead of being spread across the board.

    According to Morningstar and using WFIVX as the Wilshire 5000 index here are the weighted holdings.

    Giant 41.19
    Large 30.31
    Medium 19.36
    Small 6.39
    Micro 2.74

    So figure you're looking at at least 70% of those stocks most likely being in the C Fund. Note that Berkshire is #14 on their top 25 holdings list, yet not a component of the S&P 500.
    http://quicktake.morningstar.com/Fun...A&Symbol=WFIVX

    Good luck!

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  5. #3

    Default Re: proportion of C and S funds to imitate total US market index

    Thanks for the breakdown on the 5000! Still not sure that I want to do anything with this, but I've been looking at a lot of sample portfolios, and it's maddening the lack of opportunities we have in TSP.

    I have USAA's GNMA Trust Fund, and last year I made 5.6% on it. Not beat the average by, but made.

    And then when you have to wonder if Barclay's is truly doing their best to match the benchmarks...

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SPY (C Fund) (delayed)
proportion of C and S funds to imitate total US market index
(Stockcharts.com Real-time)
DWCPF (S Fund) (delayed)
proportion of C and S funds to imitate total US market index
(Stockcharts.com Real-time)
EFA (I Fund) (delayed)
proportion of C and S funds to imitate total US market index
(Stockcharts.com Real-time)
AGG (F Fund) (delayed)
proportion of C and S funds to imitate total US market index
(Stockcharts.com Real-time)