Author Topic: Large Cap index fund?  (Read 2192 times)

adasafa

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Large Cap index fund?
« on: May 08, 2014, 08:11:33 AM »
I currently own the following two funds in a Vanguard taxable account:

1. VEXMX (mid cap)
2. NAESX (small cap)

Should I purchase an S&P500 (large cap) Vanguard type fund or stick with something like the Total Market Index Fund?

I would imagine once I purchase a large-cap index fund, the 3 funds combined would basically be what the Total Market Index Fund is. Correct me if I'm wrong though.

Frankies Girl

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Re: Large Cap index fund?
« Reply #1 on: May 08, 2014, 08:19:03 AM »
Vanguard Total Stock Market Index Fund Investor Shares (VTSMX) is the whole thing - large, mid and small - so you'd not need to have the other two as they'd be redundant to what is already in VTSMX. Not sure why you'd choose to hold three different funds when one would do the same thing much more elegantly. And cheaper expense ratio - the two you listed have 0.24% expense ratios, while VTSMX is 0.17%...

adasafa

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Re: Large Cap index fund?
« Reply #2 on: May 08, 2014, 08:27:24 AM »
The real reason I chose those two index funds is because of their average annual returns. I saw that both had the highest amounts based on 10 yr and since inception. Not sure if that was the best way to do it though. I see the reasoning for just getting VTSMX. It may be better in the long run due to the lower expense ratio. Also, I'm not so deep into the two index funds. I can simply stop investing in those two, and just buy VTSMX from here on out.

mm31

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Re: Large Cap index fund?
« Reply #3 on: May 08, 2014, 12:12:50 PM »
I personally value simplicity when it comes to investing becomes it saves me both time (rebalancing is easy) and money (the less funds you own, the lower your overall expense ratio). I would stick with just VTSMX.

TomTX

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Re: Large Cap index fund?
« Reply #4 on: May 08, 2014, 08:29:20 PM »
If you have $10K, put it in the Admiral version: VTSAX. Expenses of 0.05%

Trirod

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Re: Large Cap index fund?
« Reply #5 on: May 09, 2014, 05:38:14 PM »
If you have $10K, put it in the Admiral version: VTSAX. Expenses of 0.05%

Or if you don't have $10k, put it in the ETF version - 0.05% ER also.