Good Morning
I'm "revamping" my investement policy a little. I basically follow an "Ivy league" type layout. 40% stock, 40% bond, 20% "alternatives" (REits, mReit, BDC, Commod, etc.) With stocks, I tilt toward value / small cap. And so I would like to find out how big of a difference it makes in separating large from small company and rebalancing when they get out of whack, vs. just investing in "total stock" and adding a small cap value tilt. In case that's still not clear, I'd need a back test or other means to determine if there's any "alpha" in having for example, Large cap fund + small cap value fund, rebalancing to keep the percentages where I put them, instead of a total stock market fund with a small SC value fund to tilt it.
If I decide to go with Total market, of course I'd just go with vanguard total stock, but if break it up, whcih of Vanguard's funds would be best suited to represent a plain vanilla US LC fund?
(PS, I will also have International, emerging market, etc.)
I'm "revamping" my investement policy a little. I basically follow an "Ivy league" type layout. 40% stock, 40% bond, 20% "alternatives" (REits, mReit, BDC, Commod, etc.) With stocks, I tilt toward value / small cap. And so I would like to find out how big of a difference it makes in separating large from small company and rebalancing when they get out of whack, vs. just investing in "total stock" and adding a small cap value tilt. In case that's still not clear, I'd need a back test or other means to determine if there's any "alpha" in having for example, Large cap fund + small cap value fund, rebalancing to keep the percentages where I put them, instead of a total stock market fund with a small SC value fund to tilt it.
If I decide to go with Total market, of course I'd just go with vanguard total stock, but if break it up, whcih of Vanguard's funds would be best suited to represent a plain vanilla US LC fund?
(PS, I will also have International, emerging market, etc.)