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Learning, Sharing, and Teaching => Investor Alley => Topic started by: Aggie1999 on February 23, 2017, 08:20:15 AM

Title: Russell 1000 Index and 2000 Index Roughly Equal to Vanguard Total Stock Market?
Post by: Aggie1999 on February 23, 2017, 08:20:15 AM
Does a 50/50 split between the following two index funds roughly equal Vanguard Total Stock Market (VTI)? These two funds have the cheapest ER of all offered in my 401k.

BlackRock Russell 1000(R) Index M - Large Cap Funds
BlackRock Russell 2000 Index-M - Small Cap Funds

Thanks.
Title: Re: Russell 1000 Index and 2000 Index Roughly Equal to Vanguard Total Stock Market?
Post by: NoStacheOhio on February 23, 2017, 08:24:31 AM
https://www.bogleheads.org/wiki/Approximating_total_stock_market

Looks like a 9:1 ratio large/small gets you pretty close (second to last box on the chart)
Title: Re: Russell 1000 Index and 2000 Index Roughly Equal to Vanguard Total Stock Market?
Post by: Aggie1999 on February 23, 2017, 08:28:20 AM
Quote from: NoStacheOhio on February 23, 2017, 08:24:31 AM
https://www.bogleheads.org/wiki/Approximating_total_stock_market

Looks like a 9:1 ratio large/small gets you pretty close (second to last box on the chart)

Thanks. I swear I looked at that page multiple times and somehow missed it. Time to adjust my AA!
Title: Re: Russell 1000 Index and 2000 Index Roughly Equal to Vanguard Total Stock Market?
Post by: NoStacheOhio on February 23, 2017, 08:50:17 AM
Quote from: Aggie1999 on February 23, 2017, 08:28:20 AM
Quote from: NoStacheOhio on February 23, 2017, 08:24:31 AM
https://www.bogleheads.org/wiki/Approximating_total_stock_market

Looks like a 9:1 ratio large/small gets you pretty close (second to last box on the chart)

Thanks. I swear I looked at that page multiple times and somehow missed it. Time to adjust my AA!

Honestly, you could go 100% large cap and get pretty much the same results. It's twice as many companies as the S&P 500, which already correlates very closely with the total market.