Author Topic: Index Fund Question--for US stocks  (Read 1530 times)


  • 5 O'Clock Shadow
  • *
  • Posts: 1
Index Fund Question--for US stocks
« on: June 29, 2015, 08:13:06 AM »
Hi all--I ran searches before posting, but didn't come up with the answer so pardon if this question has been answered a number of times.

I'm trying to sort out my work 401K which has been automatically invested in really high fee funds.  Since I can pick individual funds for the 401K rather than keep their pre-determined "growth" selection of investments, I'm trying to determine what vanguard funds should make up the US Stock portion of my fund allocation.  I have the ability to invest in the 500 Index Admiral Shares, which seems like a good pick--my question is whether or not any of the rest of my money allocated to US Stocks should be put into something like the Small Cap Growth Index or Mid Cap Index funds?  Thanks in advance for your thoughts.  And overall--pretty excited to be a participant in the forums instead of just a longtime reader. 


  • Pencil Stache
  • ****
  • Posts: 726
  • Age: 35
  • Location: Colorado
Re: Index Fund Question--for US stocks
« Reply #1 on: June 29, 2015, 08:52:26 AM »
The US Total Stock Market is made up of roughly 80% S&P 500 and 20% Small/Mid-Cap stocks. So if you had access to both a small-cap index and mid-cap index fund, your allocation (for US stocks) would look something like this:

80% S&P 500
10% Mid-Cap Index
10% Small-Cap Index

Of course, you could always hold small/mid-cap indexes at a higher allocation if you wanted to tilt towards them.