The thing is, that because of cap-weighting, infuriating peculiarities along the lower fringe of the S&P 500 don't carry much weight and therefore don't matter much.
If you don't like the S&P 500, yet don't want the total market, two funds constructed entirely on the basis of stock size are VONE, tracking the Russell 1000, and VV, tracking the CRSP Large-cap Index. Do you think the differences are enough to matter to you?
Source
![Image]()
I'm not going to praise the S&P 500 beyond saying it has always been a decent proxy for the total market. And that when near-perfect proxies for the total market became available at the same cost, circa the early 2000's, I switched. The Vanguard Total Stock Market Index Fund has more assets than the Vanguard 500 Index Fund, and I would guess more Bogleheads use it.
If you don't like the S&P 500, yet don't want the total market, two funds constructed entirely on the basis of stock size are VONE, tracking the Russell 1000, and VV, tracking the CRSP Large-cap Index. Do you think the differences are enough to matter to you?
Source
I'm not going to praise the S&P 500 beyond saying it has always been a decent proxy for the total market. And that when near-perfect proxies for the total market became available at the same cost, circa the early 2000's, I switched. The Vanguard Total Stock Market Index Fund has more assets than the Vanguard 500 Index Fund, and I would guess more Bogleheads use it.
Statistics: Posted by nisiprius — Tue Aug 27, 2024 3:04 pm — Replies 50 — Views 2659