So what my wife and I agreed on for the 401k:
50% VIIIX - expense ratio: 0.02%
https://personal.vanguard.com/us/funds/snapshot?FundId=0854&FundIntExt=INT(Seeks to track the performance of the Standard & Poor’s 500 Index, which measures the investment return of large-capitalization stocks)
50% VEMPX - expense ratio: 0.07%
(Vanguard Extended Market Index Fund seeks to track the performance of a benchmark index that measures the investment return of small- and mid-capitalization stocks.)
https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/productoverview?fundId=1860Our IRA / CMA (after tax investment account):
50% VOO - expense ratio: 0.05%
(ETF that tracks the S&P 500)
50% VXF - expense ratio: 0.09%
(ETF that tracks the extended market)
Our thought is that the S&P 500 tracks the 500 biggest companies, and the extended market tracks everything but the top 500 (so it's nothing but small and mid cap companies).
Then we can get 50% big companies, 50% small and medium companies, as opposed to just buying VTI which is basically 90% large cap and 10% small / medium cap.
We get 30 free ETF trades per month in our IRA and CMA, so only the 401k gets the mutual funds.
Since I am 22 and wife is 21, we're young enough to gamble on the small and medium companies doing better than the big companies. So what are your thoughts, are we okay in our thinking? What would you change?